What's Happening?
Air cargo traffic between Asia and North America contracted in 2025 amid ongoing trade disputes, particularly between the U.S. and China. According to the International Air Transport Association (IATA), the Asia-North America corridor saw a 0.8% decline
in cargo ton kilometers (CTK), while Asia-Europe routes experienced a 10.3% increase. The shift in market share reflects a reallocation of trade lanes, with Asia-Europe gaining prominence. The decline in Asia-North America traffic is attributed to tariff uncertainties and policy-driven disruptions, which have led to a redistribution of cargo flows toward more resilient routes.
Why It's Important?
The contraction in Asia-North America air cargo traffic highlights the significant impact of geopolitical tensions on global trade patterns. The shift away from traditional trade routes underscores the vulnerability of supply chains to policy changes and trade disputes. This realignment could have long-term implications for logistics and manufacturing sectors, as companies may seek to diversify their supply chains to mitigate risks. The trend also emphasizes the growing importance of Asia-Europe trade lanes, which could influence future economic and trade policies.
What's Next?
As trade tensions persist, further shifts in global cargo traffic patterns are likely. Companies may continue to explore alternative trade routes and supply chain strategies to navigate the uncertainties. The ongoing trade disputes could prompt policy adjustments and negotiations aimed at stabilizing trade relations. Additionally, the performance of air cargo corridors will be closely monitored by industry stakeholders to assess the impact of geopolitical developments on global trade dynamics.
