Air Cargo Market Navigates Paradox of Rising Capacity and Elevated Rates
The global air cargo market is experiencing a significant contradiction as the return of passenger flights introduces substantial belly capacity. Despite this overcapacity, which would typically lower prices, air freight rates remain unexpectedly elevated. This resilience is primarily fueled by a massive surge in e-commerce volumes from Asia and ongoing disruptions in ocean shipping, such as the Red Sea crisis. Consequently, the market is seeing a trend where shippers are hesitant to sign long-term contracts, preferring the flexibility of the spot market amid the volatility.
Official Source: https://theloadstar.com/news-in-brief-podcast-week-21-2026-overcapacity-contracting-and-elevated-air-rates/
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