We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Air freight rates slump from historic highs

Air freight rates slump from historic highs

Industry hit by economic and political uncertainties on world trade, Clive says.

clive cargo rate graph.jpg
August 10, 2022
Supply Chain Quarterly Staff
No Comments

Flight disruptions have roiled airport travel patterns in recent weeks, and statistics now show that trend is one of several variables that have combined to slow down the global air cargo market for freight as well as passengers.

The global air cargo sector saw freight demand as measured by volume drop 9% in July compared to the same month last year, amidst a continued slowing down of load factor, capacity, and airfreight rates, according to an analysis of seasonally adjusted general air cargo market performance data from Clive Data Services, a unit of ocean and air freight rate analytics provider Xeneta.

In addition to volume, airfreight rates also continued to fall in July, relative to the June 2022 year-over-year analyses, although they remain historically high, at 11% above the same month a year ago and 121% compared to pre-pandemic July 2019. 

The slowdown in the global air cargo market since March is caused by a “multitude of disruptions outside of the industry’s control,” Niall van de Wouw, founder of Clive and now Chief Airfreight Officer at Xeneta, said in a release.

Those variables include uncertainties caused by the continuing war in Ukraine, the escalating “cost of living” and its impact on both household budgets and business performance, and severe operational challenges at airlines and airports due to significant shortages of ground staff. 

“There are many dark clouds hanging over the air cargo industry given the state of the world right now. Volumes are subdued, and while air cargo rates are still elevated, they are slowly but surely easing back towards pre-Covid levels. From a rates point of view, indicators suggest the market has yet to bottom out,” van de Wouw said.

“The slow slides in rates, compared to 2019 and 2021, continues by a handful of percentages each month. In January, rates were +156% compared to the same month in 2019. Now this figure is 121% or a reduction of 35% pts on a global scale.”

 


Air
KEYWORDS CLIVE Data Services Xeneta
  • Related Articles

    Ocean container rates cool slightly from historic highs

    Air cargo rates dip as transatlantic freight volume cools off

    Monthly shippers index shows relief from high freight rates

Recent Articles by Supply Chain Quarterly Staff

Companies to grow investments in energy-transition solutions, emissions reduction

Cargo imports forecast to sink near three-year low in February

Air cargo demand slumped in 2022 after “extraordinary” levels in 2021

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Forecasts call for freight rate slumps in 2023

  • Projected U.S. recession in early 2023 will soften freight market

  • Inflation drops again as interest rate hikes hit home, NRF says

  • How to avoid the next crisis: A new approach to supply chain agility

  • New Jersey truck fleet says Freightliner tractors will deliver safety as well as freight

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

  • THE NEW WAY TO WAREHOUSE: 4 Innovations in Automation & Robotics to Boost Warehouse Productivity

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing