Global air cargo demand experienced a significant 6% increase year-on-year in September. This surge in demand, coupled with a more modest 2% growth in capacity, led to higher utilization rates and a substantial rise in spot market pricing. Airfreight spot rates climbed 27% year-on-year, reaching an average of $3.10 per kilogram.
In response to this volatile market environment and elevated rates, shippers are increasingly shifting away from long-term fixed annual contracts. During the third quarter, a notable 60% of new airfreight contracts were for durations of three months or less. This represents a significant increase from the previous year, when only 25% of new contracts fell into this short-term category.
For freight forwarders and operations managers, this trend indicates a continued need for agile procurement strategies. The prevalence of short-term contracts suggests that securing stable, long-term capacity at predictable rates remains challenging. Forwarders must be prepared to navigate a dynamic pricing landscape, potentially leveraging spot market opportunities while managing client expectations for cost and service stability. This also implies that capacity management and rate negotiation will remain critical areas of focus, with a greater emphasis on flexibility and real-time market adjustments rather than fixed annual agreements.
