Global air cargo demand growth slowed to 3 per cent year-on-year in September, down from 5 per cent in July and August, as the market heads into the final quarter with signs of stabilisation, reported Mumbai's STAT Trade Times.

Xeneta's Chief Airfreight Officer Niall van de Wouw said the slowdown reflects easing global uncertainty and reduced urgency in supply chain frontloading. Spot rates fell 4 per cent to $2.54 per kg, marking the fifth straight monthly decline.

Adjusted for currency devaluation, the effective drop in rates was closer to 10 per cent. TIACA's Glyn Hughes noted that demand held up well despite strong year-on-year comparisons, with spot rates settling into equilibrium.

Transatlantic and Transpacific routes saw muted activity due to extended US tariff deadlines. The removal of the de minimis threshold led to a 38 per cent drop in Chinese e-commerce exports to the US in August.

Chinese e-commerce firms pivoted to Europe, boosting Asia-Europe volumes by 4 per cent in early September. Year-to-date sales to Europe rose 58 per cent, with August alone up 55 per cent, according to China Customs.

Super Typhoon Ragasa disrupted East Asian hubs, limiting September's month-on-month growth to 3 per cent. Spot rates on Southeast Asia-US routes fell 2 per cent month-on-month and 22 per cent year-on-year.

India-US air cargo demand declined due to new US tariffs and lingering effects of the Red Sea crisis. Van de Wouw described the corridor as volatile and difficult for operators with high fixed costs.

Asia-Europe spot rates rose 4 per cent month-on-month but remained down 5 per cent and 21 per cent compared to last year. Rate fluctuations have led to a rise in six-month contracts and a drop in long-term deals.

Van de Wouw expects Q4 to be weaker than hoped, but forecasts overall 2025 air cargo growth at 3 to 4 per cent, noting that the year may end better than initially feared.