According to a recent report by Xeneta, in June, the global air cargo market experienced its sixth consecutive month of double-digit growth, with demand increasing by 13% year-on-year.
As Q4 approaches, Xeneta anticipates that the air cargo market is to heat up, particularly in many Asian markets. Airlines and freight forwarders are already considering implementing peak season surcharges by the end of August.
According to the report by Xeneta, the e-commerce boom, disruptions in ocean freight due to conflict in the Red Sea, and general improvements in global manufacturing activities were the primary drivers behind the significant increase in global air cargo spot rates in June.
These rates saw their largest increase of the year, climbing 17% year-on-year to USD 2.62 per kg.
Given the market uncertainties and potential for an air cargo rate boom in Q4, shippers are adjusting their preferred contract lengths. In Q2 of 2024, contracts lasting more than six months increased their share by 28%.
Xeneta also observes how freight forwarders are procuring fewer cargo volumes in the spot market. For example, in Q2 of 2024, the proportion of cargo volumes procured in the spot market accounted for 42% of the total market, showing a 3% reduction versus a year ago.
Source: trans.info