Air cargo avoids trade woes in May; outlook remains tricky

With our a strong presence in the expedited international airfreight business, we were interested to read an article on the Air Cargo News website in which Damian Brett writes that the latest monthly figures produced by analysts and consultants show that air cargo had another escape in terms of demand levels in May, but rates started to come under pressure as weak market sentiment continues to weigh on the outlook.

The article quotes the latest figures provided by data provider Xeneta, which show that airfreight demand increased by 6% year on year in May, while capacity was down 2% and the dynamic load factor was flat at 57% despite trade volatility and economic uncertainty.

On the other hand, the average global airfreight rate for May fell 4% compared with last year to USD2.44 per kg – the first decline since April last year.

In the article, Xeneta chief airfreight officer Niall van de Wouw says that much of the increase in demand for May was fuelled by “emergency” shipments following the trade detente rather than because of the strength of underlying demand.

The decline in rates, meanwhile, is likely the result of market sentiment and lower fuel prices, which are tracking around 20% below where they were last year.

“Market fundamentals are holding up, but the drop in rates is likely a reflection of declining sentiment and concerns, particularly among airlines, over what will happen once more stability returns to international trade and there is less of a push for the security of airfreight,” said van de Wouw.

The complete article can be read here: https://www.aircargonews.net/data-news/air-cargo-dodges-trade-woes-in-may-but-the-outlook-remains-difficult/1080226.article

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