Air cargo demand likely to diminish: Xeneta

Hopes of a surge in air cargo demand towards the end of the year diminished in October as the latest data showed only a slight uplift in demand. The latest figures from data provider Xeneta show that air cargo demand increased 2% in October compared with September which is described as “sub-seasonal” compared with the previous five years. General air cargo spot market rates were also up by around 2% over the two months, reaching $2.28 per kg. Compared with a year ago, demand was up 2% in October while rates were down 30%, although this is the lowest rate of decline registered this year. Rates also remain above pre-Covid 2019 levels, supported by premium and special cargoes, while general cargo rates have “nearly gone back to their pre-pandemic levels”. “This is attributed to the slight uptick in global cargo volumes as well as a slowdown of cargo capacity growth in a month in which global belly capacity returned to its pre-pandemic level, albeit this recovery is varied across major lanes,” said Xeneta in a press release.The dynamic load factor reached 59% in October, which is its second-highest level of the year, but still down two percentage points on October 2022 levels.