Kuala lumpur: Total air cargo demand measured in cargo tonne-kilometres (CTK) rose by 5.5 percent year-on-year in July 2025, reflecting a rebound in the cargo market amid ongoing trade tensions. According to BERNAMA News Agency, the International Air Transport Association (IATA) reported that international CTK saw a 6.0 percent increase year-on-year, with most regions experiencing single-digit gains. The Asia-Pacific region led the growth with an 11 percent increase year-on-year.

IATA's director general, Willie Walsh, noted that most major trade lanes showed growth, except for the Asia-North America route, where demand decreased by 1.0 percent year-on-year. A decline in e-commerce, due to the expiration of the United States de minimis exemptions on small shipments, was likely balanced by shippers preemptively moving goods before the implementation of higher tariffs on US imports.

Walsh further stated that August data would likely provide clearer insights into the impact of shifting US trade policies. He emphasized the importance of maintaining a broad perspective on the global network despite the focus on US-connected markets. Notably, a fifth of air cargo travels on the Europe-Asia trade lane, which recorded 29 months of consecutive growth with a 13.5 percent year-on-year increase in July.

According to IATA, which represents approximately 350 airlines accounting for over 80 percent of global air traffic, air cargo volumes remained robust in most regions despite disruptions or high-risk airspace usage in the Middle East and ongoing contractions in the transatlantic corridor. Cargo yields experienced a 2.0 percent year-on-year decrease, but the overall market still achieved a 0.8-percentage point increase compared to the previous month, driven by strong growth on other cargo routes.