Global air cargo spot rates experienced a substantial 41% year-on-year increase in May, climbing to an average of $3.40 per kilogram. This surge was primarily driven by a 4% rise in demand, which continued to outpace the available air cargo capacity. Despite this recent spike, industry analysts from Xeneta predict that pricing pressure will likely ease throughout June. This expected moderation is attributed to two main factors: a return of air cargo capacity from the Middle East region and the market's entry into the typically quieter summer season.
For freight forwarders and shippers, this outlook suggests a potential reprieve from high airfreight costs. The anticipated increase in Middle East capacity, possibly linked to the normalization of routes or increased belly cargo availability, combined with seasonal demand patterns, could lead to more favorable rates and improved capacity options. Shippers have largely been avoiding long-term commitments, preferring spot market transactions, which indicates a cautious approach to future pricing and capacity. This strategy may prove beneficial if spot rates indeed decline in the coming month, offering more flexibility and potentially lower costs for urgent shipments.
