Signs of recovery emerge for air cargo industry

Signs of recovery emerge for air cargo industry

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This week's reports indicate a slight improvement in the air cargo market, which is largely attributable to China's production expansion. The Baltic Air Freight Index, which measures forwarder prices, increased by 3.5% during the week of March 6 according to the most recent weekly market report by TAC Index. The market had been experiencing an extended period of falling spot prices, and contracts were renegotiated at lower levels. With China's reopening and the approaching busy summer season, TAC suggested that the market could be close to bottoming out.

Flexport, a freight forwarder, has also observed an increase in demand. Specifically, eastbound transpacific demand from northern China increased, resulting in capacity constraints. This was attributed to an increase in demand for e-commerce, which led to rate increases. However, demand from Taiwan, Korea, and Southeast Asia remained subdued.

In south China, supply was constrained and demand was rising, resulting in rate increases from the previous week. The demand from the Americas has remained stable, while the demand from Europe has increased due to fluctuations in exchange rates.

With China's production increasing and the summer season approaching, reports indicate a slight improvement in the air cargo market. While demand and rates improved in some regions, they remained weak in others.

MintN