Fashion
Global air freight grows in Aug, yet pricing pressures deepen
Despite steady growth in demand, accompanied by a 4 per cent YoY increase in available capacity, global average spot rates fell for the fourth straight month, slipping 3 per cent to $2.55 per kg in August. The decline is likely sharper once currency effects are considered, with the US dollar losing 4 per cent against other currencies in the past year, Xeneta said in a press release.
Shift in trade flows may also be weighing on rates. For example, China–US air cargo was priced at $4.3 per kg in August, but many e-commerce shipments were re-directed to the China–Europe corridor due to US de minimis bans, where rates stood at $3.65 per kg. Such reallocation drags down the global average. A 7 per cent drop in jet-fuel prices may also have helped ease airlines’ costs, muting pressure on rates for now.
Global air cargo demand grew 5 per cent YoY in August for a second month, but spot rates fell 3 per cent to $2.55 per kg, reflecting fragile market conditions.
Trade shifts, US de minimis bans, and a 7 per cent drop in jet fuel shaped flows, while e-commerce offered support.
Analysts caution uncertainty, weak sentiment, and tariff impacts may hinder sustainable growth despite current demand resilience.
The rate decline extended across most major trade lanes, with Southeast Asia–North America and Europe routes seeing the sharpest falls, down over 20 per cent YoY to $4.8 and $3.05 per kg, respectively, as capacity pressures eased. Northeast Asia performed slightly better, with rates to North America down 8 per cent YoY at $4.76 per kg and to Europe holding steady at $4.01 per kg, though backhaul prices slipped 13 per cent on continued trade imbalances. The Transatlantic corridor was the only exception, recording a 5 per cent YoY rise to $1.82 per kg, albeit a marked slowdown from July’s near 20 per cent surge.
“It is often said that airfreight is a bellwether for macroeconomics, but I don’t think it is at the moment,” said Niall van de Wouw, chief airfreight officer at Xeneta. “Right now, volumes are certainly not as bad as people feared, but also not as good as people hoped. In our April data, on the back on the US administration’s ‘Liberation Day’ tariffs announcement, we asked ‘how bad will it get?’ for air cargo demand. We still cannot answer that question.”
“More than ever, shippers are falling into three categories right now,” added van de Wouw. “There are those who will always say ‘no way’ to airfreight because their products simply cannot justify the higher cost of air versus ocean freight. Then there are traditional air cargo customers who always ship goods by air because of its speed and value for their high-priced or more perishable or time-sensitive products. Between these two views sits a bigger group of shippers who will use ocean to move their goods if they can, and airfreight if they must. It is this segment of the market which is driving the upturn in airfreight demand we are seeing.”
E-commerce has been a stabilising force since 2023, driving double-digit monthly growth in 2024. But the removal of the US de minimis threshold for duty-free imports is reshaping flows. While aimed at large Chinese platforms, the changes affect B2B shipments significantly, adding administrative burdens and costs.
“Many SMEs are reacting to these changes, and while B2C may remain resilient, B2B flows will face greater challenges,” van de Wouw observed.
Looking ahead, Xeneta warns that falling purchasing managers’ indices in major exporting economies, weakening US consumer sentiment, and the end of de minimis exemptions will continue to add volatility.
“Uncertainty seems set to remain with so many questions unanswered. The predictions are concerning but, because of this uncertainty, the hurt for airfreight has been softened and delayed. For how much longer anyone’s guess,” van de Wouw concluded.
Fibre2Fashion News Desk (SG)
Indian textile & apparel exports were shadowed by US tariffs, which came into effect last month. Growth rate in the outbound shipment slowed down from 3.8 per cent in the first four months of current fiscal.
India’s textile and apparel exports rose 2.52 per cent to $15.11 billion in April–August FY26, but growth slowed from 3.8 per cent earlier as US tariffs hit competitiveness.
Apparel exports grew 5.78 per cent, while textiles were flat.
August saw declines in both segments, and rising cotton imports added pressure to the sector’s trade balance.
It is pertinent to mention that the US had increased reciprocal tariff on Indian goods from 10 per cent to 25 per cent from August 7. After 20 days, it had imposed another 25 per cent penal tariff on Indian goods. It made Indian goods more expensive in the US and uncompetitive against other exporting countries.
According to an analysis by the Confederation of Indian Textile Industry (CITI), India maintained milder growth in textile and apparel exports during the period, compared to $14.742 billion during the first five months of the previous fiscal year 2024–25, when apparel exports were $6.395 billion, and textile exports stood at $8.346 billion.
In August 2025, the shipments of both segments—textiles and apparel—noticed mild decreases. Apparel exports eased by 2.65 per cent to $1.234 billion, down from $1.268 billion in August 2024, whereas textile exports fell by 2.79 per cent to $1.696 billion from $1.745 billion. During July 2025, apparel exports were up but textile exports were down.
The share of T&A in India’s total merchandise exports remained stable 8.21 per cent during April– August 2025, according to the latest trade data released by the Ministry of Commerce and Industry.
Within the textiles segment, exports of cotton yarn, fabrics, made-ups, and handloom products eased by 0.62 per cent to $4.865 billion in the first five months of FY26. On the other hand, exports of man-made yarn, fabrics, and made-ups rose marginally by 0.24 per cent to $1,994.99 million, while carpet exports increased by 1.32 per cent to $623.08 million.
In August 2025, exports of cotton yarn, fabrics, made-ups, and handloom products eased by 2.32 per cent to $985.18 million, while exports of man-made yarn, fabrics, and made-ups fell 3.08 per cent to $406.15 million. Carpet exports dropped by 7.22 per cent to $119.21 million.
Imports of raw cotton and waste surged by 48.75 per cent to $510.48 million during April– August 2025, compared to $343.18 million in the same period of the previous fiscal. Imports of textile yarn, fabrics, and made-ups rose by 8.67 per cent, from $994.21 million to $1,080.45 million.
In August 2025, imports of raw cotton and waste increased by 21.32 per cent, from $104.89 million to $127.25 million. Imports of textile yarn, fabrics, and made-ups eased by 0.59 per cent to $227.35 million.
In FY25, India’s apparel exports rose by 10.03 per cent to $15.989 billion, while textile exports grew by 3.61 per cent to $20.617 billion. Imports of raw cotton and waste surged by 103.67 per cent to $1.219 billion, and imports of textile yarn, fabrics, and made-ups increased by 8.69 per cent to $2.476 billion.
In FY24, India’s T&A exports stood at $34.430 billion, marking a 3.24 per cent decline from $35.581 billion in FY23. Imports of raw cotton and waste were valued at $598.63 million in FY24, down 58.39 per cent from $1.439 billion in FY23. Imports of textile yarn, fabrics, and made-ups also fell by 12.98 per cent to $2.277 billion.
Fibre2Fashion News Desk (KUL)
Mayhoola’s put options on Kering exercisable in 2026 and 2027 for its remaining 70% stake in Valentino are now postponed to 2028 and 2029, respectively. Kering’s call option to acquire Mayhoola’s stake in 2028 is also deferred to 2029. All other contractual provisions relating to the options remain unaffected.
Kering and Mayhoola have amended their shareholders’ agreement for Valentino, postponing Mayhoola’s put options to sell its remaining 70 per cent stake to Kering to 2028 and 2029, respectively.
Kering’s call option is also deferred to 2029.
The ownership structure will stay unchanged until at least 2028.
Both parties reaffirm commitment to Valentino’s long-term growth under CEO Riccardo Bellini.
As a new chapter at Valentino has opened with the appointment of Riccardo Bellini as CEO, Kering and Mayhoola confirm their strategic partnership to support the development of the iconic Italian luxury House and remain entirely committed to its long-term success.
Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.
Fibre2Fashion News Desk (RM)
Against a backdrop of falling vacancies and rising unemployment, business confidence in the UK labour market remains low.
The UK labour market is facing mounting pressures as businesses grapple with rising costs, regulatory changes and an increasingly challenging economic environment, the annual Confederation of British Industry-Pertemps Employment Trends Survey revealed.
Business confidence in the labour market is low.
Companies are warning that the cumulative cost of doing business is a major threat to competitiveness.
Companies are warning that the cumulative cost of doing business is a major threat to the United Kingdom’s current and future competitiveness with jobs, investment and future pay rises at risk.
Eight-six per cent of respondents believe the UK labour market is a less attractive place to invest and do business compared to five years ago, with 54 per cent ranking it as ‘much less’ attractive; 82 per cent expect this trend to continue.
Labour costs rank as the top threat to current labour market competitiveness and was selected by 73 per cent of respondents. The impact of employment regulation on flexibility ranked second (65 per cent), followed by access to skills (58 per cent).
The main drivers of concern about the cost of employing people are national insurance contributions (NICs) and costs coming from the Employment Rights Bill (selected by 69 per cent and 53 per cent of respondents respectively), a CBI release said.
Seventy-eight per cent believes the bill will hit growth, investment, jobs and discretionary employee benefits. This concern has grown since last year when half of firms (54 per cent) were worried.
Twenty-seven per cent of respondents expect their organisation will be smaller than it is today in twelve months’ time, slightly more than the proportion intending to grow (26 per cent).
Taken together, the increase in NICs and the past three National Living Wage increases add up to an additional cost of over £24 billion for businesses each year.
Seventy-three per cent respondents believe labour costs are a threat to current UK labour market competitiveness. This is the first time that labour costs have ranked as the top threat to labour market competitiveness since the question was first surveyed.
Sixty-nine per cent identify the recent NICs rise as one of the top three biggest cost threats to UK labour market competitiveness, followed by the implementation of the Employment Rights Bill (53 per cent).
Businesses want to see government build a consensus about how to deliver the Employment Rights Bill so that it supports growth.
The survey also highlights how the current approach to growth and skills levy reform is hurting businesses’ ability to invest in skills and deliver training. Sixty-seven per cent believe that the absence of a clear road map for eligible training courses will hinder workforce planning.
Half of the respondents believe that continued rigidity in the levy is stopping their organisation from being able to deliver training to address skills gaps.
Fibre2Fashion News Desk (DS)
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