Capacity up but demand remains depressed: DHL

Demand remains low with minimal growth while global capacity has increased by 12% year on year, said DHL Global Forwarding in its Air Freight – State of the Industry report for August. While only a ‘conservative’ increase in volume demand is expected in the 2023 late-year peak season, most airlines have capacity at hand. Rising demand for passenger travel has boosted the number of flights and has increased bellyhold capacity by around 19%, year on year, the report added. DHL sees scheduled carrier capacity as likely to be up 9% in the third quarter of 2023 compared with the second quarter, and by 18% compared with the first quarter. Capacity remains sufficient on most trade lanes. However, retirements of freighters on the transpacific routes are bringing capacity “one step closer towards right-sizing”. Meanwhile, high global inventories, inflation and lower purchasing power are both keeping demand in check, it said.