According to the latest data from several sources, the global air cargo industry seems to be on the path to recovery. The International Air Transport Association’s (IATA) February analysis showed that global demand for cargo tonne-km was 2.9% higher than the pre-pandemic level in February 2019. While there was a 7.5% reduction in global demand in February 2022, it improved significantly compared to the previous two months when an annual decline of 14.9% and 15.3% occurred. Additionally, available cargo tonne-km capacity rose by 8.6% in February 2022, with belly capacity accounting for much of the increase as the passenger side of the industry continues to recover.
Clive Data Services also noted that the average rate cost per kg was $2.62 in March of 2023, which was a 4% drop from February 2023 as general air freight spot rates took a year-on-year reduction of 38%. This decline is attributed to the recuperation of capacity and shrinking cargo volumes. Global cargo volumes have been declining for 13 months, but there was some relief in March, showing the lowest monthly decline – 3% year on year. Analysts at Clive Data Services say that March saw the largest year-on-year increase in capacity at 16%.
Chief Airfreight Officer Niall van de Wouw, at Xeneta (Clive Data Services parent company), said: “I think we’re seeing signs that some forwarders are willing to take a little more risk on what airfreight rates might do. Everybody wants to achieve growth, but if the market is not growing, you have to grab a share from someone else. Shippers have regained some ground because of the lower rate conditions, which have affected airlines and forwarders…”
The Loadstar reports: “International belly capacity grew by 57% in February, year on year, reaching 75.1% of 2019 capacity.” Although, we haven’t seen what impact the strikes around Europe will have on the industry.
While it is too early to determine that the air cargo industry has fully recuperated, the latest data offers a positive outlook. The gradual recovery of air cargo volumes, capacity, and rates indicates a rise in the demand for the industry’s services, which is good news for those who have been dealing with disruptions and a lack of capacity for over a year.
At Alba Wheels Up, we’ll get your cargo where it needs to go while closely monitoring any possible disruption and have contingency plans ready to deploy to keep you moving. Reach out to Alba today to see how we can help build resilience into your logistics strategy.
–
