Air cargo shippers are choosing short-term contracts due to rising tariffs.

Shippers and freight forwarders are hesitant to commit to long-term air cargo capacity contracts amid rising international trade tensions, as evidenced by a report from Xeneta. In Q1, 79% of shipper contracts were short-term, reflecting a significant year-over-year increase. With tariffs on imports escalating, particularly between the U.S. and China, shippers are reluctant to lock in fixed rates, fearing potential long-term costs. Moreover, the planned reinstatement of a de minimis exemption ban for imports from China could further disrupt e-commerce shipments, affecting overall cargo capacity and market dynamics.