Air-freight spot rates slide amid growing supply; Last-mile logistics strengthened by new partnership

Global air-cargo spot rates continued to decline in October 2025, marking the sixth consecutive monthly drop, according to a report from Xeneta. Average spot pricing fell to roughly $2.58 per kilogram, down about 3% year over year, while contract rates dropped even further to approximately $2.31 per kilogram, an 8% annual decline. Demand grew around 4% compared with last year, but capacity increased by roughly 5%, creating a supply-demand imbalance that suppressed rates. Regional performance varied: Southeast Asia to North America lanes saw steep 21% year-over-year rate reductions, Northeast Asia to North America rates fell around 10%, and Europe to North America experienced a 6% decline in demand.

For small businesses, the current market presents an opportunity to secure more competitive air-freight pricing and improve cost efficiency. Lower rates may also make premium transit times more attainable within existing budgets. However, the broader softening in demand signals a need for caution when forecasting future volume or committing to long-term contracts. The present environment is well-suited for reassessing mode choices, negotiating more favourable contract terms, and strengthening flexibility within transportation plans while rates remain advantageous.

A new strategic partnership between Uber Freight and Better Trucks, including a minority investment by Uber, is expanding last-mile delivery coverage and enhancing operational technology. According to Supply Chain Dive, Uber Freight’s last-mile reach now covers roughly 68% of the U.S. population, with expectations of reaching 85% by the end of 2026. The arrangement grants access to Better Trucks’ network of sortation centers as well as its geocoding, address-validation, and API-driven integration tools. These capabilities are designed to improve first-attempt delivery success, reduce exceptions, and streamline data flows across platforms used by retailers and carriers.

For small businesses, the strengthened last-mile network offers broader geographic reach, more reliable tracking, and improved delivery consistency — all increasingly important in a competitive e-commerce landscape. Enhanced integration reduces operational friction and the risk of failed deliveries, while expanded coverage provides greater flexibility when planning fulfillment strategies. As major logistics players consolidate capabilities, small shippers may benefit from evaluating existing last-mile partners to determine whether current providers are keeping pace with rising expectations for transparency, reliability, and technology-enabled delivery performance.