Air Cargo Demand Continues to Surge in 2024
Strong Demand Leads to Increased Capacity and Rates
The air cargo market remains strong in 2024, with demand continuing to outpace supply. According to the International Air Transport Association (IATA), air cargo demand grew by 134% in the first six months of the year, compared to the same period in 2023. This growth has been driven by a number of factors, including the continued recovery of the global economy, the growth of e-commerce, and the ongoing supply chain disruptions caused by the COVID-19 pandemic.
Capacity Expansion and Rate Increases
In order to meet the growing demand, airlines have been expanding their cargo capacity. The IATA reports that global air cargo capacity increased by 44% in the first six months of the year. This growth has been driven by the return of passenger flights, which have increased the availability of belly space for cargo. However, the growth in capacity has not been sufficient to keep up with the growth in demand, which has led to an increase in air cargo rates.
Spot Rates on the Rise
Spot rates for air cargo have been rising steadily throughout the year. According to the Baltic Exchange, spot rates from Bangladesh to Europe have risen to their highest level this year, amidst political unrest in the region. This increase in spot rates is putting pressure on shippers, who are facing higher costs to move their goods.
Outlook for the Second Half of 2024
The outlook for the air cargo market in the second half of 2024 is mixed. While demand is expected to remain strong, the growth in capacity is expected to slow down. This could lead to further increases in air cargo rates. However, the overall outlook for the industry remains positive, as the global economy is expected to continue to recover and e-commerce continues to grow.
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