Cargo Breaking News
Not even zero growth in November and December can disrupt the global air cargo market from landing a year of unexpected double-digit demand growth in 2024. Healthy volumes of +11% in October and spot rates up +19% year-on-year reflected the growing maturity and balance among buyers and sellers of air cargo capacity, according to the latest market data by Xeneta.
A year of constant, unexpected disruptions outside of the industry’s control – which began with a growth forecast as per October 2023 of +1-2% for the full 2024 – is now firmly on course to end on a high in terms of demand. Such conditions traditionally result in winners and losers, but lessons learned and applied by shippers, freight forwarders, and airlines “shows the industry at its best,” says Niall van de Wouw, Xeneta’s Chief Airfreight Officer.
“The frequency and diversity of ‘storms’ coming the way of the air cargo industry in 2024 mean this year could have been quite messy, but the industry has found a way to navigate these challenges,” he said. “This shows the prep work has paid off as well as the flexibility shown in the industry. We see more emphasis on maintaining relationships than squeezing every last dime of revenue.”
While October’s global air cargo spot rate continued to stay elevated – averaging USD 2.68 per kg and just a few cents below 2023’s peak season high – the growth momentum slowed down from +25% in September, due mostly to a high comparison base in October 2023. In terms of the month-on-month trend, October’s spot rate was relatively flat compared to September.
The elevated year-on-year growth spot rate was supported by continued double-digit growth (+11%) in global demand, measured in chargeable weight. In comparison, global cargo capacity supply edged up only 2% year-on-year.
