Cathay Cargo is cautiously optimistic for the coming year despite facing a very uncertain environment.
The cargo carrier last year reported a 9% increase in cargo volumes to 1.6m tonnes and Cathay Pacific cargo director Dominic Perret said this improvement allows the carrier enter the year with a “cautiously optimistic” outlook.
He added that the company is operating in a very uncertain environment but there are growth sectors that Cathay is hoping to capitalise on.
He pointed out that on 1 January, Mexico has put tariffs ranging from five to 50% on goods produced in China and other Asian countries, and Europe is adding a €3 fee to low-value packages entering the bloc from July.
Perret said neither of these developments are positive for air cargo and the e-commerce it carries.
“We face ongoing risks to our business from the global geopolitical situation and associated macroeconomic impacts,” said Perret.
“But we also see clear opportunities – for example, in the growing airfreight demand for AI-related infrastructure and the continued strength of key Asian manufacturing hubs.”
He added that Cathay Cargo can adjust capacity across it in response to changing demand.
Last year, for example, the carrier strengthened its network in Southeast Asia by adding a seasonal freighter service to Madrid.
“The ability to carry all types of specialised cargo also continues to be a differentiator for us,” he added.
“These higher yield cargoes, such as pharmaceutical or live animal shipments, demonstrate our customer promise and We Know How credentials.”
He added that demand for air cargo technology products being manufactured in Asia – such as server racks and semiconductors – is expected to remain robust through 2026.
2025 takeaways
On last year’s performance, Perret said that Cathay Cargo’s transpacific loads held up in the fourth quarter peak season.
“There have been challenges – for example the removal of the de minimis tariff exemption for small value packages entering the US has had an impact on e-commerce demand,” Perret said.
“But there were also opportunities we were able to capitalise on – such as the growth of air cargo demand for the critical infrastructure for datacentres alongside the “AI boom” and the continued strength of Asian manufacturing hubs – notably in Southeast Asia and Taiwan, China.
“So there have been forces pulling in both directions, but overall it was a satisfactory year.”
Digital developments
Over the coming months, the carrier will roll out improvements to its manage booking function on its website to allow customers to oversee and modify bookings themselves.
The improvements have been introduced in Taiwana and the southwest Pacific and will progressively be rolled out across the rest of its network.
“We’ll also keep developing digital systems and adopting AI to ensure we optimise how we use data and become ever more responsive to market trends and customer needs to drive our service excellence,” said Perret.
Elsewhere, Cathay Cargo is hoping to develop its intermodal links from Hong Kong International into the Greater Bay Area (GBA), especially for inbound cargo.
Last year, naugurated the Air-Land Fresh Lane for perishable imports into the GBA.
“The GBA is a big consumer market and the through-air waybill to Zhuhai simplifies and expedites cross-border import processes,” he said.
