Air cargo sees extended peak season and expects strong finish

With our strong presence in the expedited international airfreight business, we note a report on the Freightwaves website by Eric Kulisch, which provides a very useful overview on the current state of the international air cargo market.

The report indicates that the air cargo sector has entered the busy season for cross-border shipping on a remarkable nine-month run, and logistics experts say the momentum will carry into the first quarter of 2025, a time of year when volumes typically recede after the retail sector’s holiday rush.

Kulisch writes that volumes year to date are about 12% higher than at last year’s three-quarter mark, according to an average of industry datasets.

He adds that global air cargo spot rates this month reached new highs for the year as demand continues to build, powered by a wave of e-commerce parcels from Asia-Pacific sellers, cargo diversion tied to Red Sea shipping delays and very tight capacity.

Quoting Niall van de Wouw, Xeneta’s chief airfreight officer, he writes that forwarders and cargo owners are accepting peak surcharges from airlines because it is a seller’s market, adding the possibility that some carriers may not honour long-term capacity commitments to take advantage of higher spot rates.

One cloud on the horizon is the slowdown in global manufacturing, raising concerns about weakening demand and renewed destocking. The Purchasing Managers’ Index for new export orders dropped in August from July to 48.9, indicating trade contraction for the third consecutive month.

Kulisch concludes that economic conditions remain relatively favourable for air cargo, with inflation under control again in most regions and major economies avoiding a recession.

The complete article can be read here: https://www.freightwaves.com/news/air-cargo-sector-rides-elongated-peak-season-to-strong-finish?oly_enc_id=2359H2956723J0G

For more information about the U-Freight Group’s global air freight forwarding and logistics services, or our e-commerce logistics operations, please visit the relevant pages of this website or contact your local office, details of which can be seen here: https://www.ufreight.com/en/location