air-cargo

Asia Airfreight Capacity Squeezed by Fuel Costs, Tech Demand

Air cargo capacity from Taiwan and South Korea faces mounting pressure as semiconductor and artificial intelligence server shipments sustain stable demand, while elevated jet fuel expenses constrain available lift. Rates are rising on routes connecting Taiwan to Europe, the US and intra-Asia markets, with South Korea experiencing similar tightness. Carriers are adjusting operations by reducing payload weights or swapping Boeing 747 freighters for more fuel-efficient 777 aircraft, significantly constraining effective capacity despite stable year-over-year demand. Recent US-China trade discussions have prompted some high-tech shippers to resume direct services from China to America, reversing earlier transhipment patterns through Southeast Asian hubs. Meanwhile, operational congestion persists at Thailand's Suvarnabhumi Airport, where cargo handling delays exceed seven days at certain terminals, prompting increased cross-border trucking as alternative routing.