Strong demand for clothing has driven significant increases in air cargo rates in India, Bangladesh, and Sri Lanka, which rose by +81 per cent, +40 per cent, and +55 per cent, respectively, according to Xeneta’s market research.
With the start of the summer schedules in March, it implies predictions of decreasing pressure on air cargo fares between Europe and North America.
Globally, air freight is off to a good start in 2024. In February, demand increased by double digits (+11 per cent YoY), and average spot rates increased by +2 per cent to US $ 2.29 per kg. Traditional pre-pandemic trends are being challenged by the unexpected rate spike, which is ascribed to reasons including the disruption in the Red Sea and a jump in e-commerce demand.
While air cargo capacity is constant, there is a 10 per cent increase in worldwide air freight traffic in February, which raises the dynamic load factor to 60 per cent. The prolonged fighting in the Red Sea increases demand for air cargo, which affects ocean container shipping and causes modal changes.
Spot pricing has increased month over month by +34 per cent to US $ 2.15 per kilogramme, with South Asia to Europe leading the way. Rates from China to Europe rise by 11 per cent, but the week ending 3rd March sees a -9 per cent decline due to the Lunar New Year holidays. February saw a 15 per cent increase in the China to US spot rate, indicating ongoing demand from international e-commerce. Shippers overcome capacity restrictions imposed by e-commerce by taking into account alternate hubs. Air freight spot fares from Europe to the US increase by +5 per cent in February.
When airlines get ready for summer schedules, industry participants predict market trends that could have an influence on transatlantic air freight with a potential +50 per cent capacity increase.
