Air cargo’s hopes for end-of-year volume surge dwindle

Market growth remains steady, but pressured capacity and other traditional signals of a late burst in demand were lacking in October, Xeneta reported.

Air cargo rates continued to be influenced by flat YoY capacity growth in October, following a 2% uptick in September, Xeneta reported. Global air cargo spot rates, which are valid for up to one month, stood at $3.11 per kilogram in October, up 29% YoY. Spot rates increased 4% month over month.

Spot rates also increased month over month across all of Xeneta’s 10 selected global corridors, with the largest spike on the Transatlantic westbound trade lane, Xeneta reported. As carriers transitioned to winter flight schedules, Europe to North America spot rates increased 10% YoY to $2.31 per kilogram. Xeneta further noted that tighter capacity on this trade lane is pushing up carrier rates being quoted to forwarders in recent tenders.

Meanwhile, on the Transpacific trade lane, artificial intelligence-related shipments continue to drive demand, with chargeable weight from Asia Pacific to North America up 15% YoY in October, per Xeneta. From Southeast Asia to North America, spot rates stood at $6.34 per kilogram, up 3% month over month. Meanwhile, rates from Northeast Asia to North America were up 4% compared to the prior month, at $6.21 per kilogram.

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