Air cargo demand continues to grow but peak surge looking unlikely

Air cargo demand growth remained strong, but the chance of there being a further end-of-year surge seems to be fading, according to data provider Xeneta.

The data firm’s latest figures show that in October air cargo demand increased by 6% year on year while capacity was flat. As a result of demand growing faster than supply, the cargo load factor increased by two percentage points to 63%.

Meanwhile, average spot rates were up 29% compared with last year at $3.11 per kg as carriers failed to add capacity to the growing market and fuel prices drove up the cost of air cargo operations.

While demand is on a run of seven months of consecutive growth, Xeneta says it doesn’t seem like there will be a further surge in volumes during the air cargo Christmas peak season.

This story was originally published by Air Cargo News. Read the full story at Air Cargo News →