Air cargo slumps in March as war, China lockdowns take toll

The war in Ukraine, sanctions on Russia and stepped-up COVID lockdowns in China caused the air cargo market to contract in March and macroeconomic clouds could further dampen a sector that has performed well during a chaotic pandemic. The impact is being felt in freight rates, which are quickly climbing as capacity disappears faster than demand. Clive Data Services reported that shipment volumes declined 6.5 percent last month compared to the pre-COVID level in 2019 and were 4.5 percent lower than a year ago. Meanwhile, available cargo space on aircraft shrank four percent year-over-year and is now 14 percent less than before the pandemic.