Global airfreight demand surged in July, driving up rates across the board and setting the stage for a potentially explosive peak season. According to Xeneta, average spot rates climbed 20% year-over-year to $2.66 per kilogram, fueled by a 13% increase in cargo volumes.
Key factors driving the market:
- Booming e-commerce: Online shopping continues to fuel demand for fast, reliable shipping options.
- Low comparison base: July 2023 saw relatively weak demand, making year-over-year comparisons more favorable.
- Regional disparities: Middle East-Europe and Central Asia-Europe experienced exceptional growth, driven by disruptions in the Red Sea and Bangladesh.
Industry outlook:
While the air cargo industry has shown resilience in overcoming challenges like IT outages, all eyes are now on late August for the official start of peak season. Carriers are optimistic about maintaining positive tailwinds, with potential for significant rate increases as demand peaks.
Market highlights:
- South Asia: Strong demand is expected for US and European routes, prompting carriers to raise rates in anticipation.
- Southeast Asia: Spot rates to Europe and North America more than doubled compared to the previous year.
- Northeast Asia: While growth is impressive, it’s slightly moderated compared to the exceptionally strong performance in 2023.
As the industry braces for peak season, shippers and forwarders are closely monitoring market developments and adjusting their strategies accordingly.
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