Air Cargo Market Struggles Despite E-commerce Boost

Global air cargo demand remains weak, barring southern China's strong e-commerce volumes. Rates see region-specific shifts amidst rising operational costs.

Air Cargo Market Struggles Despite E-commerce Boost
Photo by John McArthur / Unsplash

The air cargo market continues to experience weak global demand, with the exception of strong e-commerce volumes emerging from southern China. This trend, illustrated by a slight decline in rates per TAC Index, and the Baltic Air Freight Index dropping 2.4% week-on-week, paints a challenging outlook for carriers. Certain regions, however, are experiencing significant rate shifts. Hong Kong, for instance, saw a 2.1% rate increase driven by e-commerce traffic to Europe and North America, while rates from Frankfurt to North America slipped slightly.

The current market conditions have led to a forecasted decline in freighter capacity as airlines use this period for heavy maintenance checks. Upcoming developments like a dockworker union strike in Canada could potentially provide a minor boost to air cargo.

Source: The Loadstar

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