Geopolitical tensions, particularly the Red Sea conflict, are expected to affect air freight significantly in 2025, according to Xeneta’s latest update. Key challenges include Trump’s proposed tariffs on Chinese imports, which may lead shippers to relocate production, and rising criminal activities that necessitate stricter security measures. Climate change will also disrupt supply chains through severe weather events. Despite a projected demand growth of 4-6% against a 3-4% capacity increase, shippers must remain vigilant and adapt to these challenges to manage costs effectively.