According to Shipping News, Dimerco has alerted market participants that the ongoing expansion of air cargo capacity across the Asia Pacific region is failing to translate into lower freight shipping rates for logistics providers and their clients. Despite the increased availability of space, the cost of transit remains elevated.

The logistics firm suggests that the supply-demand balance currently observed in the aviation freight market is skewed. While operational space on aircraft is rising, various macroeconomic factors and fuel surcharges continue to apply upward pressure on pricing. Industry analysts monitoring these trends note that the disconnect between capacity growth and pricing relief indicates a market that is not yet ready for a contraction in costs.

Market Capacity Dynamics

Official industry data suggests that while airlines are deploying more freighter aircraft and utilizing belly space on newly restored passenger routes, the underlying demand for high-priority global logistics remains resilient. Shippers looking for cost reductions may find the current environment challenging, as the surplus of physical space is being countered by sustained operating expenses for air carriers.

Why It Matters

The persistence of high shipping rates in the face of expanded capacity suggests that air freight is becoming a structurally more expensive utility. For multinational corporations reliant on just-in-time inventory management, this implies that the "cheap" era of air logistics is likely over. Companies must now reconsider their supply chain resilience, as volume-based discounts are harder to secure when carriers prioritize yield management over market share. This shift highlights a permanent adjustment in how airlines price their premium services, likely driven by labor costs and long-term sustainability investments rather than just immediate fuel price fluctuations.