AI saved air cargo? Rates up 30% YOY

Air cargo rates have surged by 30% year-over-year, with a 6% increase in volumes, according to recent reporting from FreightWaves. This growth has caught analysts off guard, as they had predicted a significant downturn in 2025 following the post-COVID recovery of 2024. The primary driver behind this unexpected boom is the surge in demand for AI-related equipment.

As customs regulations and de minimis import restrictions have curtailed consumer parcel shipments to the U.S. and Europe, the demand for AI hardware has stepped in to fill the gap. Freight forwarder Kuehne+Nagel has noted that slower automotive exports from Europe have also contributed to the challenge faced by air freight. Despite these headwinds, air freight volumes have defied earlier forecasts of decline, with analysts noting a "robust" growth in the sector.

On the drone delivery front, Walmart is partnering with both Wing and Zipline in nearly 300 stores across the nation. Zipline's recent $1.5 billion funding raise will be used to scale up manufacturing, while Wing plans to invest $125 million in a Texas factory to produce delivery drones. These efforts are geared towards the anticipated FAA rulemaking that will establish more robust standards for beyond-line-of-sight drone flights.

The competitive landscape for last-mile drone delivery is becoming increasingly crowded, with Walmart, Amazon, and DoorDash all vying to offer quick commerce solutions — 30-minute or faster deliveries — which carriers and retailers believe will boost consumer engagement and loyalty.