mobile bongdasoNews #109 - Air cargo shippers opt for short-term contracts as tariffs escalate

Global trade uncertainty is prompting air cargo shippers and freight forwarders to favor short-term contracts over longer-term agreements, as highlighted in a recentXenetareport. This shift, driven by escalating tariffs and mobile bongdaso uncertain future of mobile bongdaso de minimis exemption, is reshaping mobile bongdaso dynamics of mobile bongdaso air cargo market.

Key Findings from Xeneta’s April 3 Report

Short-term contracts dominate: In mobile bongdaso first quarter of this year, 79% of shipper contracts were short-term agreements of three months or fewer, reflecting a nearly 20 percentage point increase year-over-year.

Spot market reliance: Freight forwarders are keeping approximately 45% of volumes on mobile bongdaso spot market to mitigate risks associated with long-term commitments.

“With overall rate growth slowing, we would typically expect shippers to make longer capacity commitments for competitive rates. However, this environment has made such strategies a gamble, particularly with mobile bongdaso anticipated impact of tariffs,” statedNiall van de Wouw, Xeneta’s Chief Airfreight Officer.

Dive Insight: Trade Tensions Ripple Through Supply Chains

mobile bongdaso tariff-heavy trade policies under mobile bongdaso Trump administration have introduced significant volatility into global supply chains. mobile bongdaso air cargo market has been particularly impacted, especially for shipments on mobile bongdaso China-U.S. trade lane.

Recent developments include:

Tariff hikes: mobile bongdaso U.S. increased tariffs on Chinese imports to 125%, potentially raising duty burdens to as high as 245%. In response, China imposed reciprocal tariffs of 125% on U.S. goods, further escalating trade tensions.

Risk aversion: Shippers and freight forwarders are reluctant to lock in fixed rates for a year, even with escape clauses in contracts. “A yearly plan agreed upon now could become significantly more expensive in mobile bongdaso long run,” van de Wouw explained.

Market Metrics: March Snapshot

Global air cargo volume: Increased by 5% year-over-year.

Average spot rate: .17 per kilogram on mobile bongdaso Northeast Asia to North America route, reflecting a 9% year-over-year rise.

Dynamic load factor: Stood at 60%, measuring mobile bongdaso relationship between cargo volume, weight, and available capacity.

De Minimis Exemption Ban Adds to Uncertainty

mobile bongdaso planned reinstatement of mobile bongdaso de minimis exemption ban for imports from China and Hong Kong, effective May, is set to disrupt mobile bongdaso air cargo market further.

E-commerce shipments at risk: E-commerce goods reliant on mobile bongdaso de minimis provision make up approximately half of mobile bongdaso China-U.S. trade lane’s air cargo capacity and 6% of global air freight demand.

Market recovery in March: A temporary lifting of mobile bongdaso de minimis ban led to a partial recovery in Transpacific e-commerce demand. However, this is expected to reverse when mobile bongdaso ban returns.

Looking Ahead: Expectations of Further Market Disruption

Industry leaders remain cautious about mobile bongdaso future.

“Everyone is closely watching how mobile bongdaso removal of mobile bongdaso de minimis threshold and mobile bongdaso array of announced tariffs will affect trade,” van de Wouw noted. “As demand declines, we anticipate a corresponding reduction in airfreight volumes. While much remains speculative, it is likely mobile bongdaso situation will deteriorate before it improves.”

March marked mobile bongdaso third consecutive month of modest single-digit growth in global air cargo demand. However, with significant disruptions looming, mobile bongdaso air cargo industry must brace for further challenges in mobile bongdaso months ahead.

𝐀𝐋𝐒 – 𝐓𝐡𝐞 𝐋𝐞𝐚𝐝𝐢𝐧𝐠 𝐨𝐟 𝐀𝐯𝐢𝐚𝐭𝐢𝐨𝐧 𝐋𝐨𝐠𝐢𝐬𝐭𝐢𝐜𝐬

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