Air Cargo Faces Capacity and Cost Challenges by 2025

Air Cargo Faces Capacity and Cost Challenges by 2025

In 2025, the international air freight market reveals a structural divergence in capacity, with a stark contrast between surplus bellyhold capacity on passenger planes and a shortage of dedicated freighters. Regional freight rates are highly volatile, with prices soaring from Southeast Asia to Europe while decreasing on the trans-Pacific routes. Companies need to leverage data analytics to optimize their shipping routes and tackle these challenges.

08/05/2025 Logistics Industry Insights
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Shipping Industry Grapples With Rising BAF Fuel Costs

Shipping Industry Grapples With Rising BAF Fuel Costs

BAF (Bunker Adjustment Factor) is a fee established by shipping companies to address fluctuations in fuel prices. By dynamically adjusting this fee, companies can manage cost changes. Combined with the IMO's low-sulfur fuel policy, BAF impacts logistics costs on shipping routes. Flexport has incorporated BAF into its rates to provide clients with a more transparent fee structure and better budget management.

08/05/2025 Logistics Encyclopedia
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Tagbilaran Port Central Visayas Key Maritime Hub

Tagbilaran Port Central Visayas Key Maritime Hub

This article provides an in-depth overview of Tagbilaran Port in the Philippines, detailing its geographical location, shipping routes, and its significance within the Philippine maritime network. It further introduces other major ports in the Philippines. The analysis extends to the challenges and opportunities facing the Philippine shipping industry. Finally, the article explores the future development prospects of both Tagbilaran Port and the Philippine shipping sector as a whole, offering insights into potential growth and evolution.

09/29/2025 Port Encyclopedia
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Shipping Rates Jump As Trade War Sparks Route Shifts

Shipping Rates Jump As Trade War Sparks Route Shifts

The international shipping market is affected by the trade war, leading to a short-term increase in freight rates. Shipping companies are adjusting routes to mitigate risks. Businesses need to closely monitor policies, diversify procurement sources, optimize supply chains, and strengthen risk management to adapt to market changes. The trade war introduces volatility and uncertainty, requiring proactive strategies for businesses involved in international trade and shipping to navigate the evolving landscape and minimize potential negative impacts on their operations and profitability.

11/03/2025 Logistics Industry Insights
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Carriers Key Roles in Global Shipping Risk Management

Carriers Key Roles in Global Shipping Risk Management

This article provides a detailed analysis of the core responsibilities and obligations of carriers in international shipping, particularly in multimodal transport. It covers aspects such as providing seaworthy vessels, proper cargo handling, and adhering to shipping routes. The article also discusses the definition of responsibilities in cargo receipt and delivery, situations of exemption, and the special liabilities and compensation limits that apply in intermodal transport scenarios.

08/04/2025 Logistics Encyclopedia
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Cargolux Expands Xianeurope Air Cargo Routes

Cargolux Expands Xianeurope Air Cargo Routes

Cainiao Smart Logistics continues to increase its investment in Xi'an Airport, launching four new European cargo routes with a planned 366 flights annually. This is expected to handle over 15,000 tons of international air cargo per year. Through increased flights, establishing local operations, and continuous investment, Cainiao Smart Logistics is helping Xi'an build an international air hub, promoting Shaanxi's export-oriented economy, and sharing in the development opportunities of the Belt and Road Initiative.

11/03/2025 Logistics
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Houthi Blockade Disrupts Israeli Trade Routes

Houthi Blockade Disrupts Israeli Trade Routes

Yemen's Houthi rebels have announced a blockade of the Israeli port of Haifa, directly impacting shipping companies and cargo owners. This action is likely to lead to increased shipping costs, supply chain disruptions, and a reshaping of regional trade patterns. Businesses are advised to closely monitor the situation and develop risk management plans. The blockade poses a significant threat to maritime traffic and could further destabilize the already volatile region, potentially impacting global commerce.

11/03/2025 Logistics
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New Tariffs Trigger Sharp Drop in Global Shipping Rates

New Tariffs Trigger Sharp Drop in Global Shipping Rates

Recently, the SCFI freight index from the Shanghai Shipping Exchange has continuously decreased, particularly along the West and East Coast routes of the U.S., with significant rate declines. Soft demand, coupled with the upcoming implementation of new tariff policies, presents fresh challenges and uncertainties for the market. Shipping companies are closely monitoring the impact of tariffs on import prices and the economy, anticipating large-scale shifts in the supply chain.

07/07/2025 Logistics Industry Insights
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