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Rising belly capacity, inflation, drives air freight rate decline
来源：shippingazette 编辑：编辑部 发布：2023/04/13 15:11:39
TRANSATLANTIC westbound air cargo volume in March registered its first monthly decline in two years with high US inflation blamed for the shortfall, reports New York's Journal of Commerce.
Westbound volume fell 12 per cent year on year in March as consumer spending slowed after increasing steadily for two years, said Xeneta air cargo analyst Wenwen Zhang.
"Despite 12 consecutive months of declining volumes in the global market, transatlantic westbound air cargo volumes have displayed a greater degree of resilience to economic challenges up to this point," he noted in an air freight update this week.
Data from Netherlands-based air cargo analyst WorldACD shows volume from North Europe to North America falling five per cent in the last two weeks of March compared with the first half of the month.
While demand has only just begun to slide, spot rates have been falling for months and are down by 30 per cent since January.
The falling rates are having an impact on how forwarders buy space on planes. Xeneta data shows that in March, 54 per cent of total market volume for air cargo shipments were procured on the spot market rather than through fixed-price agreements, much higher than the pre-Covid levels.
Large volumes are expected to stay in the spot market with persistent downward pressure on rates as belly cargo capacity increases, said Xeneta.
Airlines have significantly increased passenger flights on the transatlantic over the past year as Covid travel restrictions ended.
Flights have increased even more with the start of the International Air Transport Association (IATA) summer schedule that runs from March 26 to the end of October. The aircraft used on the trade route are wide body planes with greater belly hold capacity.
WorldACD data shows cargo capacity on Europe outbound routes was up 15 per cent year on year in the last two weeks of March. The steady injection of freight capacity has pulled down spot rate levels, which this week stood at US$3.27 per kilogramme from North Europe to North America, down 29.8 per cent since January and 42 per cent lower year on year, according to the Baltic Air Index (BAI).
Westbound volume fell 12 per cent year on year in March as consumer spending slowed after increasing steadily for two years, said Xeneta air cargo analyst Wenwen Zhang.
"Despite 12 consecutive months of declining volumes in the global market, transatlantic westbound air cargo volumes have displayed a greater degree of resilience to economic challenges up to this point," he noted in an air freight update this week.
Data from Netherlands-based air cargo analyst WorldACD shows volume from North Europe to North America falling five per cent in the last two weeks of March compared with the first half of the month.
While demand has only just begun to slide, spot rates have been falling for months and are down by 30 per cent since January.
The falling rates are having an impact on how forwarders buy space on planes. Xeneta data shows that in March, 54 per cent of total market volume for air cargo shipments were procured on the spot market rather than through fixed-price agreements, much higher than the pre-Covid levels.
Large volumes are expected to stay in the spot market with persistent downward pressure on rates as belly cargo capacity increases, said Xeneta.
Airlines have significantly increased passenger flights on the transatlantic over the past year as Covid travel restrictions ended.
Flights have increased even more with the start of the International Air Transport Association (IATA) summer schedule that runs from March 26 to the end of October. The aircraft used on the trade route are wide body planes with greater belly hold capacity.
WorldACD data shows cargo capacity on Europe outbound routes was up 15 per cent year on year in the last two weeks of March. The steady injection of freight capacity has pulled down spot rate levels, which this week stood at US$3.27 per kilogramme from North Europe to North America, down 29.8 per cent since January and 42 per cent lower year on year, according to the Baltic Air Index (BAI).