The global air cargo market has been experiencing a hot summer of double-digit demand growth, with average spot rates in August showing a year-on-year jump of 24%, marking the largest increase so far. This surge is attributed to two key factors. Firstly, the global average air cargo spot rates reached $2.68 per kg in August, a result of the ongoing imbalance between supply and demand. While the global cargo supply grew at its slowest rate in 2024, at 2% year-on-year, global cargo demand continued its double-digit growth, rising by 11%.
E-commerce Demand and Red Sea Disruptions Fuel Rate Increase
The second factor contributing to the higher rates is the shift in freight volumes from ocean to air, triggered by disruptions in the Red Sea and the burgeoning demand from e-commerce. The e-commerce sector has shown strong growth, with exports of low-value goods from China increasing by 30% year-on-year in the first seven months of 2024. This includes a 38% rise in shipments to Europe and a 30% growth in shipments to the US.
As the winter peak season approaches, these factors could potentially amplify, leading to even higher rates. Niall van de Wouw, Xeneta’s chief airfreight officer, commented on the situation, stating that the summer of 2024 saw no slack season and that the anticipation of a red-hot peak season is high.
