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Global Air Cargo Spot Rates Reach Three-Year High, But Relief Expected for Shippers

Global air cargo spot rates hit a three-year high in April, reaching an average of $2.58 per kg, a 9% increase from March. This surge was primarily driven by strong e-commerce demand and disruptions in ocean freight, particularly due to the Red Sea crisis diverting shipments to the air. Key trade lanes from the Middle East and South Asia to Europe saw the most significant price hikes. Despite the peak, market analysts predict a cooling-off period for shippers. The upcoming summer season is expected to increase passenger flight frequency, adding substantial belly capacity back into the market. This anticipated rise in supply is forecasted to stabilize and ultimately lower air freight costs.

Official Source: https://tiaca.org/global-air-cargo-spot-rates-hit-a-three-year-high-in-april-but-market-fundamentals-will-calm-costs-for-shippers/