Recent Problems of Air Freight Transportation

1.  Rising Costs (Major Issue)

• Fuel prices (jet fuel) have increased significantly
• This directly raises freight charges
• In some routes, rates have increased sharply due to demand spikes and fuel cost pressure (IATA)

 Result: Air freight is becoming too expensive for regular shipments

2.  Capacity Constraints

• Limited cargo space (especially when passenger flights reduce)
• Aging aircraft fleet due to supply chain issues (IATA)

 Result:

• Difficulty getting cargo space
• Higher prices due to limited availability

3.  Geopolitical Disruptions

• Conflicts (e.g., Middle East tensions, Red Sea issues)
• Trade route instability affecting logistics

 This causes:

• Rerouting of cargo
• Increased transit time
• Sudden cost increases (Reuters)

4.  Trade Policies & Tariffs

• Changing import/export rules
• New tariffs impacting air cargo demand

 Example:

• Policy changes in the US disrupted e-commerce shipments
• Businesses delay or cancel shipments due to uncertainty (Wall Street Journal)

5.  Supply Chain Disruptions

• Ongoing global supply chain instability
• Delays in aircraft parts and logistics operations

 Result:

• Slower operations
• Increased operational costs (IATA)

6.  Demand Fluctuation & Market Uncertainty

• Demand is growing but not stable
• Some months strong, others slow

 Industry trend:

• Growth slowing down after rapid changes post-pandemic (IATA)

7.  Infrastructure & Operational Issues

• Airport congestion
• Hub disruptions (example: major cargo hub shutdown causing delays) (Reuters)

 Result:

• Shipment delays
• Bottlenecks in delivery networks

8.  Shift from Sea to Air (Pressure Increase)

• Due to shipping disruptions, many companies shift to air freight

 This causes:

• Overload in air cargo systems
• Higher demand → higher prices (Reuters)

9.  Profit Pressure on Airlines

• High costs + unstable demand
• Freight rates sometimes falling despite cost increases

 Result:

• Financial pressure on cargo airlines (IATA)

10.  Environmental & Sustainability Pressure

• Increasing regulations on carbon emissions
• Airlines forced to adopt greener (but costly) practices

Simple Summary

Air freight today faces 3 core problems:

• High cost
• Limited capacity
• Global uncertainty (war, trade, supply chain)

 Practical Insight (Important)

For businesses like yours (export, dry prawns, etc.):

Air freight is best only for:

• Urgent shipments
• High-value goods

 Not ideal for:

• Bulk or low-margin products