Global air cargo demand in January up as compared to 2023: WorldACD

Worldwide air cargo demand in January so far remains significantly up compared with this time last year, according to the latest figures from WorldACD Market Data, with tonnages from all the main global regions ahead of last year’s figures with the exception of ex-North America traffic. Freight forwarders continue to report anecdotally that certain cargo owners are switching some Asia-Europe cargo from sea to air or to sea-air because of longer ocean voyages caused by the disruptions in the Red Sea, although from a data perspective it is difficult to separate this traffic from the normal seasonal mid-January uplift following the New Year slowdown, and from the effects of Lunar New Year (LNY), with LNY in 2024 coming later (10 February) than last year (22 January). Reflecting the serious disruptions to international container shipping, ocean freight spot rates from Asia to Europe are now around three times their level prior to the Red Sea disruptions, although air cargo rates remain relatively stable globally, and ex-Asia Pacific, compared with before the Red Sea crisis – although ex-Asia Pacific air cargo rates had already risen in the final quarter of last year due to seasonal and product-related demand factors. Some forwarders say that in anticipation of ocean to air conversions, they are blocking additional air capacity on core trade lanes to help customers keep their freight moving. Others note that the window for booking air freight ahead of Lunar New Year (10 February) is closing and the next two to three weeks could be challenging, with the expectation of “bunched” container ships arriving en masse at the main European ports, potentially triggering port delays, driver shortages and cargo build-ups at warehouses, driving further traffic towards air cargo.