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 » Global air cargo volumes slowed their decline in August, raising holiday peak hopes

Global air cargo volumes slowed their decline in August, raising holiday peak hopes

Freight rates are still far above pre-pandemic levels, but gradual correction continues, Xeneta says.

aircargo Screen Shot 2022-09-07 at 4.20.00 PM.png
September 7, 2022
Supply Chain Quarterly Staff
No Comments

Tumbling global air cargo volumes slowed their swift decline in August, offering a glimmer of hope for holiday peak season volumes after four months of a steady slump in demand, according to the latest weekly analysis from Clive Data Services, a unit of ocean and air freight rate analytics provider Xeneta.

Following year-on-year falls in demand of 8% in June and 9% in July, August showed only a 5% drop compared to the same month in 2021, and was just 4% down compared to that pre-pandemic month in 2019.

While those trends are all still negative, the industry is coping well with continuing transportation and supply chain chaos resulting from staff shortages in airports and airlines, Oslo, Norway-based Xeneta said. In addition to the lack of people resources, volatility in the global air freight sector is being triggered by the war in Ukraine, natural disasters, reports of record inventory levels in the U.S., high inflation, and Covid-related lockdowns in cities in China.

Amid that disruption, air cargo rates are also continuing their gradual transition back to the level of three years ago, helped most recently by a cut in jet fuel prices from their historical peak in June, the firm said. All in, general air freight spot rates averaged $3.61 per kilogram in August, the lowest since September last year. This was still +4% versus August 2021 and +113% above the 2019 level, although this latter percentage compared to +156% at the start of 2022, Xeneta said.

“In many respects, this latest data is quite remarkable relative to the two previous months because volumes in August – traditionally the quietest summer month due to the holiday season – levelled out and out-performed June and July when compared to last year’s volumes. The strong dollar and its parity with the euro clearly boosted demand from Europe to North America,” Niall van de Wouw, chief airfreight officer at Xeneta, said in a release.  

Expectations of a “muted” fourth quarter peak season remain, but the August numbers could be an early signal of volumes and rates starting to pick up again, he said.

“Heading into summer, we saw a 15% increase in transatlantic capacity. Now, with a slowdown in global economies expected in the near term, airlines are reporting reductions in their winter schedules, and we are likely to see continued capacity constraints on popular air cargo trade lanes, such as outbound Asia to Europe and North America, and Europe to North America. If the fall in demand is easing, however, as August indicates, that capacity shift could see us return to a seller’s market again,” van de Wouw said.

 


 

Air
KEYWORDS Xeneta
  • Related Articles

    IATA: global air freight markets still crashing but descent slowed in June

    Air France KLM Martinair Cargo and Envirotainer are intensifying their partnership

    Global air cargo market rides out turbulent 2022

Recent Articles by Supply Chain Quarterly Staff

Freightos completes plan to go public on NASDAQ exchange, raises $80 million

Retailers lose visibility as they outsource last-mile delivery, FarEye says

WiseTech buys New Hampshire drayage and trucking visibility software firm for $230 million

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

  • Five levers to build a resilient supply chain

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