Time: 2024-07-06
The air cargo industry is gearing up for a busy fourth quarter peak season , with airlines looking to maximize returns from capacity out of Asia . Industry analysts predict that spot rates will soar due to increased demand and limited capacity , especially in the Asia Pacific region . Niall van de Wouw , Chief Airfreight Officer at Xeneta , warned of peak season surcharges and major increases in spot rates , indicating a challenging market ahead for shippers and forwarders.
Xeneta reported a sixth consecutive month of double - digit year - on - year growth in air cargo demand in June . However , cargo supply lagged behind , leading to a slower growth rate . As a result , the global air cargo load factor , a measure of capacity utilization , increased significantly compared to the previous year . This imbalance between demand and supply is expected to drive up air freight rates in the coming months , with potential surcharges being considered by airlines and forwarders.
The fourth quarter could see a surge in rates , with short - term spot market prices potentially increasing by over 50 % . Airlines and forwarders are strategizing on how to capitalize on the high demand , including holding back capacity to sell at premium rates . Shippers and forwarders are seeking stability through longer - term contracts to manage demand and avoid peak season rate hikes . Those relying on spot market rates may face increased costs , while forwarders are procuring fewer cargo volumes in this market segment.
In June , global air cargo spot rates experienced significant growth compared to previous months . Rates per kilogram increased by 17 % year on year , reaching .62 . Southeast Asia to Europe and the US markets saw the largest rate increases , while Northeast Asia also experienced modest growth . However , outbound China markets saw a decline in rates . The e - commerce boom , disruptions in ocean freight , and improvements in global manufacturing activities have contributed to the rise in air cargo spot rates.
In conclusion , the air cargo industry is facing a period of high demand and limited capacity , leading to predictions of increased spot rates and potential surcharges in the fourth quarter . Shippers , forwarders , and airlines are adapting their strategies to navigate the evolving market dynamics and ensure the efficient transportation of goods.
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