air-cargo

High-Tech Exports Squeeze Southeast Asia Air Cargo Capacity

Artificial intelligence and semiconductor shipments now drive air cargo demand out of Southeast Asia, displacing e-commerce as capacity constraints tighten across the region. Taiwan and South Korea face rising rates on all major corridors, with load factors on Asia-US lanes reaching approximately 90%. The shift reflects surging demand for high-tech products destined for Asia and the United States. Europe-bound capacity from Taiwan remains more balanced with stable rates, following the European Union's implementation of a €3 customs duty on low-value parcels. This tariff has significantly dampened e-commerce demand to Europe. Thailand remains one of the region's tightest airfreight markets, while Singapore experiences backlog conditions to Europe. Malaysia's Kuala Lumpur and Penang gateways remain tight on Asia and US routes. North China and Hong Kong show higher capacity and declining rates, contrasting with tight conditions across Southeast Asia.