Air cargo capacity out of Southeast Asia is now dominated by artificial intelligence (AI) and semiconductor shipments instead of e-commerce, according to Dimerco’s August Asia Pacific Freight Report. Demand for AI, semiconductors and other high-tech products from Taiwan to Asia and the US is keeping capacity tight, with South Korea seeing similar pressure on trade lanes to Asia and the US. Rates from both countries are rising across all major corridors, while Asia e-commerce to the US and Europe has declined. Dimerco reported that “load factors on Asia-US lanes have reached approximately 90%, with AI and semiconductor shipments replacing e-commerce as the primary capacity driver”. Europe-bound capacity out of Taiwan is more balanced with stable rates, following the EU’s implementation of a €3 customs duty on low-value parcels imported from outside the EU. Recent WorldACD Market Data showed air cargo volumes between Asia Pacific and Europe have dropped, and data from Aevean showed freighter capacity into Europe had also fallen. In comparison, capacity from North China and Hong Kong to the US is higher with falling rates, while South China has plenty of capacity and stable rates. Airfreight demand out of Southeast Asia is robust with limited capacity and increasing rates; Thailand remains one of the region’s tightest markets, Singapore is experiencing backlog conditions to Europe, and Malaysia’s Kuala Lumpur International and Penang International gateways remain tight on Asia and US-bound lanes. India faces rising pressure, while Australia has soft capacity and stable