General overview: With the upcoming arrival of October 1, the air market ushered in the biggest peak season of the year, the space situation of all routes are very tight. Air rates are also rising; it is expected that in the last two weeks of September, air rates will rise to the highest level of the year.
Leading e-commerce companies are limiting available air freight capacity by securing peak charter flights, particularly out of China. The shipment of consumer electronics is also expected to reduce space availability.
In Bangladesh and India, the situation remains much the same as last week.
At Dhaka Airport, the cargo village is experiencing congestion. Carriers continue to encounter issues with onward confirmation from hubs, particularly for flights headed to the US and Canada. Airlines continue to face equipment shortages.
In India, demand has continued to increase this week and all carriers have increased rates to the EU and USA. Space to the USA is very tight.
Heavy rainfall in Mumbai has resulted in delays for cargo movements to the airport. Further to this, heavy rainfall has also now hit Delhi and is expected to continue for the coming days and weeks.
Shanghai to London
- Airport operations are currently normal
- Hauliers are working as normal
- No flight cancellations
- Weather is normal
- Space is very tight
- Air rates are increasing
Shanghai to New York
- Airport operations are currently normal
- Hauliers are working as normal
- No flight cancellations
- Weather is normal
- Space is very tight
- Air rates are increasing
Shanghai to Los Angeles
- Airport operations are currently normal
- Hauliers are working as normal
- No flight cancellations
- Weather is normal
- Space is very tight
- Air rates are increasing
Shanghai to Frankfurt
- Airport operations are currently normal
- Hauliers are working as normal
- No flight cancellations
- Weather is normal
- Space is very tight
- Air rates are increasing
Shanghai to Melbourne
- Airport operations are currently normal
- Hauliers are working as normal
- No flight cancellations
- Weather is normal
- Space is very tight
- Air rates are increasing
Shanghai to Sydney
- Airport operations are currently normal
- Hauliers are working as normal
- No flight cancellations
- Weather is normal
- Space is very tight
- Air rates are increasing
Market intel
IATA: Air cargo soars in 2024 as bumper peak season beckons
TOTAL demand for air cargo rose by 13.6 per cent year on year in July, which marks the eighth-straight month of double-digit annual growth, according to the International Air Transport Association (IATA).
Demand is showing strength from month to month as well, with seasonally adjusted global cargo tonne-kilometres (CTKs) growing by one per cent over June.
This expansion led to the highest level of industry CTKs since the record-breaking demand achieved at several points throughout 2021. At the time, air cargo demand jumped 18.7 per cent from 2020 levels, which was the second-biggest annual demand improvement tracked by the iata behind 2010's 20.6 per cent gain.
'Air cargo demand hit record highs year-to-date in July with strong growth across all regions,' said Willie Walsh, IATA's director general. 'With the peak season still to come, it is shaping to be a very strong year for air cargo. And airlines have proven adept at navigating political and economic uncertainties to flexibly meet emerging demand trends.'
International routes surged 14.3 per cent year on year, pushing up global traffic levels.
Airlines registered in Asia Pacific, the Middle East, and Europe delivered the highest annual growth rates in international CTK, registering 17.7 percent, 14.7 per cent and 13.9 per cent increases, respectively. Carriers from Asia Pacific and Europe have been strong throughout the year, contributing 44 per cent and 22 per cent to the global surge in CTKs from April through June.
The IATA did note that the strong year-on-year growth rates have benefited from an overall weak 2023 market, when cargo volumes were down because cautious wholesalers and retailers decided to draw down inventory before making new orders.
With that in mind, the air freight ecosystem has been impacted by various factors worldwide. Mr Walsh said that the air cargo business 'continues to benefit from growth in global trade, booming e-commerce and capacity constraints on maritime shipping,' referring to the rise of overseas players like Shein and Temu and the ongoing rerouting of ships away from the Red Sea. The AITA's market analysis said the capacity constraints favour a partial modal shift from sea to air.
This shift could continue, and more capacity should be gobbled up, as the holiday season gets closer and shippers share concerns about late shipments.
Source: SeaNews
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