Air cargo is typically unaffordable for most shippers. With ocean rates off the charts, air doesn’t look so bad. If you can find a booking, why wouldn’t you fly?
Airfreight markets around the world are facing serious capacity constraints. Trade growth is overwhelming the physical ability of carriers to move goods and it’s reflected in transport prices.
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.
Good luck finding an available aircraft to haul your goods at a reasonable price for the next three months. Competition for airlift is fierce these days. Find out why.
Air cargo capacity is tight out of key areas in Southeast Asia, but Chinese exporters enjoyed a week of flat to lower rates as supply exceeded demand
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.
Price inflation has tapered off for many – not all – air cargo markets during the second half of August. Shippers shouldn’t get used to it.
Airfreight exports from China slowed a bit in mid-August, allowing shippers to take back a tiny bit of pricing before rates shoot up for the next few months in as retailers build inventory for the holidays.
Several passenger airlines have proven that cargo can be lucrative business during a pandemic with little travel. American Airlines quickly built a dedicated cargo operation but is now throwing more resources at the business as market conditions improve.
Shipping by air got much more expensive when the coronavirus pandemic exploded in March. After moderating earlier this summer, another price spike is brewing.
There are still quite a few freight market watchers who are bearish on volumes and a recovery. This is with outbound tender volumes exploding higher, along with spot market rates.
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.
The global airfreight market contracted during the first six months of 2020, but airlines made much more money from cargo than last year, according to World ACD.
vailable cargo space on outbound aircraft from China is starting to become scarce again. Shippers better hurry to lock up reservations for the late summer and peak season.
The air cargo market is getting closer to equilibrium, but the coronavirus is a wild card that could disrupt economic activity and put a premium on air transport again.
The air freight market appears saner in recent weeks, with less competition among shippers for transport services. But the shape of the recovery is anyone’s guess and a possible demand spike for face masks and surgical gowns could create a hyper-market again.
Glass half empty – cargo business and finances are bad for the airlines. Glass half full – they’re not as bad as they were two months ago.
Read the full article to learn more.
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A former senior executive at Martinair has been sentenced to 14 months in prison for her role in a long-running air cargo price-fixing scheme.
To a lay person, air freight is a term that is interchangeable with parcel. For a freight forwarder or shipper, air freight means something different.
Market expert Jesse Cohen writes about the 2019 air cargo market to date, and industry personnel look ahead to 2020.
Market expert Scott Case has written about the use of dynamic pricing in airfreight. Long-used to sell passenger seats on airplanes, dynamic pricing is new to airfreight – but will likely be used extensively going forward. Read Scott’s take on the why’s and wherefore’s of the move.
FreightWaves adds air cargo volume and pricing data to SONAR platform
