2025 Air Freight Market Outlook: Insights for the China-Ireland Trade Lane
As we step into 2025, the air freight market stands at a critical juncture, shaped by global trade uncertainties and evolving consumer demands. For businesses operating along the China-EU trade lane—particularly the burgeoning China-Ireland corridor—understanding these dynamics is essential for staying competitive and resilient.
Ocean Freight Disruptions and the Shift to Air Freight
Recent market sentiment suggests that 75% of shippers plan to increase their use of air freight in early 2025 to counter potential disruptions in ocean shipping. For China-EU and China-Ireland trade, reliability issues in ocean freight could see air freight gain traction as the preferred mode of transport. Ireland, in particular, is emerging as a vital hub for trade, leveraging its strategic location and growing connections with Chinese markets.
However, shippers face cost pressures. Rising fuel expenses, capacity imbalances, and operational adjustments, such as detours to avoid Russian airspace, are pushing up air freight rates. European carriers, limited by these challenges, are increasingly ceding ground to Chinese airlines, which benefit from shorter, more cost-effective routes.
What Types of Cargo Are Transported by Air?
Air freight is essential for transporting high-value, time-sensitive goods. This includes perishable items like fresh produce and pharmaceuticals, valuable commodities such as electronics and jewelry, and urgent shipments like medical supplies or spare parts. Its speed and reliability make it indispensable for industries requiring swift delivery and global reach.
Demand-Supply Imbalances and Competitive Dynamics
Air freight capacity is expected to grow modestly by 4-5% in 2025, while demand is projected to rise between 6-10%, creating a tight supply environment. Chinese carriers are well-positioned to dominate this space, particularly on Europe-to-Asia routes. Their ability to fly over Russian airspace gives them a competitive edge, enabling faster transit times and lower costs compared to their European counterparts.
For the China-Ireland trade lane, this dynamic is likely to translate into greater reliance on Chinese carriers for consistent and cost-effective solutions. Businesses shipping high-value or time-sensitive goods will need to navigate a market where capacity constraints may intensify competition for available space.
E-Commerce and the Rise of Air Freight
E-commerce continues to be a key driver of air freight growth. By 2025, Asia-Pacific markets, including China, are expected to dominate the $36 trillion global B2B e-commerce market, with growth rates of 20-25%. The rise of niche brands and direct-to-consumer models further underscores the importance of air freight for quick and reliable delivery, particularly for trade routes like China-Ireland, where e-commerce demand is rapidly expanding.
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Potential regulatory changes, such as tax exemption, could also influence global trade flows. While larger e-commerce players may adapt by absorbing higher costs, smaller businesses in Ireland and beyond may face challenges. This highlights the importance of agility and innovation in inventory management and distribution strategies.
Air Freight from China to Ireland
In the China-Ireland air freight market, the limited capacity of Irish airports, with Dublin Airport being the primary option, poses challenges. Dublin Airport prioritises exports and special cargo, leaving insufficient capacity for e-commerce shipments from China to Ireland. As a result, many shipments must first be transported to the UK. To address this, our company offers a comprehensive solution: a well-established bonded warehouse in the UK and a reliable weekly trucking service from the UK to Ireland. Once the goods arrive in the UK, customers can easily create a T1 transit document to transfer the cargo to our bonded warehouse, enabling smooth customs clearance in Ireland. This bonded warehouse model provides an efficient and effective solution for optimising e-commerce logistics between China and Ireland.
Preparing for the Future: Strategies for Success
Businesses engaged in the China-EU and China-Ireland trade lanes must adapt to these shifting dynamics. Key strategies include:
The air freight market in 2025 promises both challenges and opportunities, particularly for the China-Ireland trade lane. By staying informed and proactive, businesses can navigate these complexities and capitalise on the sector's growth potential.
For more insights and tailored logistics solutions, connect with us at E2G Logistics. Together, we’ll help your business soar in the evolving global market.
As the only logistics provider in Ireland specialising in Chinese markets, our bilingual team is on hand to ensure your goods arrive safely in Ireland. Easy2Go, rooted in Ireland, brings together more than 40 years of collective experience. We're experts in customs clearance, Air Freight, Sea Freight, Road Freight, Bonded Warehousing, eCommerce Solutions, and providing logistics support for trade between Ireland and China. We're proud holders of AEO and ISO 9001:2015 certifications. Let us help you bridge the gap between China and Ireland, making cross-border e-commerce simple, efficient, and scalable. ???? Visit us at https://www.easy2go.ie/
(Cover image source: IATA)