Business is very soft in the air cargo sector and likely to get softer still, but there are signs that demand could spark up in the second half of the year.
Freightos has set up an index to track a basket of prices for airfreight, just like it did with its ocean shipping index.
The London-based maritime market data provider will offer subscribers airfreight indices via partnership with TAC.
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.
Air cargo rates spike in the wake of the coronavirus outbreak. Medical supplies are in high demand while much of the air capacity is grounded.
Airfreight demand from China is still lower than normal this time of year, but it is finally picking up as the coronavirus scare gradually subsides. The new dynamic is reflected in higher cargo rates.
Cohen, a 30 year air cargo veteran of United Airlines and Etihad Airlines has been appointed as FreightWaves Market Expert, Air Cargo. In this role he will be providing analytics and commentary about the air cargo market and will be working with data partners in the air cargo space.
TAC Index Managing Director Peyton Burnett demonstrates his platform, explains how the data is processed, and outlines the potential for the derivatives market based on reliable air cargo price discovery.
In the last round of live technology demonstrations at MarketWaves 18, companies showed off products that automated document imaging and processing, matching loads to trucks, financing the supply chain, and creating price discovery for air cargo.
Air freight prices continued to rise this week as capacity tightened, ushering in the beginning of peak season, according to a STIFEL conference call focused on TAC Index’s role in air cargo market intelligence.
