Air cargo demand is projected to slow to 6% next year, bolstered by positive economic supply chain and economic trends against a backdrop of rising geopolitical uncertainty.
Air cargo is a good news, bad news story this year. Shipment volumes are at pre-crisis levels. But cargo is joined at the hip with passenger airlines, which are cutting more flights and struggling to survive.
Airfreight markets are topsy-turvy in the COVID era, but importers and exporters can count on one thing: paying two to three times normal rates. CFOs will have to increase their transport budgets if they want goods to move quickly.
Air cargo flight frequency begins to bounce back in the second half of 2020, exceeding 2019’s airline cargo monthly volumes.
Companies that need to move goods by air will need to increase their transportation budgets to get through the fourth quarter as low capacity ignites airfreight prices.
Shipping by air got much more expensive when the coronavirus pandemic exploded in March. After moderating earlier this summer, another price spike is brewing.
Shipping goods by air is expensive, especially on the biggest trade lines from China. Rates are much higher than normal for this time of year, but they are heading up more with no end in sight.
Airfreight rates from China are on the rise again. The rest of the world is more stable when it comes to air cargo. But China is driving much of the transport activity because of its export of face masks and other goods.
Face shields, gloves and hand sanitizer were yesterday’s hot airfreight product. Now the cool shipments that people need right away are yoga pants, bikes and hot tubs.
Tender rejections: After increasing from 6.52% to 8.91% last week, we expect national rejection rates to continue to rise but at a slowing pace in the coming week as carriers struggle to recover from spiking demand. Manufacturing outlook: The coming week will give a refresher for industrial production. Manufacturing is plagued by a lack of […]
Diesel fuel price outlook EIA statistics show total U.S. distillate production at the highest level ever for the second week of February despite significant concern over demand. Inventory reports were bearish. One other factor looming in the market: OPEC meets March 5-6. All models show it needs to cut further to balance markets, but it […]
Manufacturing outlook: The coming week will give some insights into the outlook for manufacturing activity in the Northeast region via the Empire State Manufacturing Index. The overall segment remains depressed and sustained rise is not expected through the first quarter. Construction outlook: There will be updates for housing and construction from housing starts, building permits, […]
Tender rejections: Looking into the week, we expect the capacity to continue to loosen as volumes remain at midwinter levels. Occasional surges in demand are not unheard of in February, but they are unlikely to have much impact on capacity. Carriers who operate in California and around the ports need to start thinking about the […]
Diesel fuel price outlook The rack-to-retail spread has widened to more than $1.10/gallon, creating an unearned windfall for trucking carriers. Diesel markets have been sliding in part on an overall decline in oil since the start of the year, but retail is slow to follow. Diesel itself has fallen farther than crude, primarily on fears […]
