Global air cargo set for double digit growth: Xeneta

The global air cargo market is poised for double-digit growth in volumes in 2024, following a notable 12 per cent year-on-year (YoY) increase in demand in May, according to the latest data analysis by Xeneta. This promising outlook contrasts with the conservative, low single-digit growth forecasts made at the end of last year, as the market has experienced six consecutive months of extraordinary regional demand for cargo capacity, it adds
In May, the global air cargo spot rate saw its second consecutive monthly growth, rising by 9 per cent YoY to $2.58 per kg, and increasing by 5 per cent month-on-month. The most significant YoY rate increase was observed in the Middle East & Central Asia to Europe corridor, where the spot rate surged by 110 per cent to $3.21 per kg due to ongoing disruptions in the Red Sea. Spot rates from Southeast Asia and China to North America also saw significant rises, up by 65 per cent and 43 per cent to $4.64 per kg and $4.88 per kg respectively. The China-Europe spot rate recorded a 34 per cent YoY increase to $4.14 per kg, as per Xeneta.

“In terms of growth data, analysts sometimes say ‘once is an incident, twice is a coincidence, and three-times is a pattern’. In the world of air cargo, there’s an undeniable pattern emerging. We can’t use the word ‘surprising’ anymore. When we take a mid-term view of the market, with these kinds of numbers, we might be on track for double-digit growth for the year. It is now a possible scenario,” says Xeneta’s chief airfreight officer, Niall van de Wouw.