2023-08-19 12:31:22
The demand for air freight increased to unprecedented levels when the “Covid 19” pandemic caused the closure of borders and disruption of supply chains, but this sector is now suffering from severe difficulties due to excess capacity and falling freight rates with low demand rates for it.
Consumers, who used to spend their lockdown periods shopping online for the goods they want, are now traveling in increasing numbers abroad.
Passenger planes, which have cargo spaces, have also started flying once more following they were halted due to the pandemic, in what constitutes a challenge and creates competition with companies specialized in air freight.
Dial shift
The shift in demand from goods to services and the sudden expansion of cargo capacity on passenger aircraft cut air freight demand by a third last year.
Air cargo industry executives and analysts say this is a shock to the roughly $200 billion industry that handles a third of global trade by value.
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slower contraction
The International Air Transport Association said that air freight in June witnessed the slowest contraction since February 2022.
Norwegian freight market analysis firm Xenita said freight rates from China or Southeast Asia to the United States have risen by 5 to 7 percent since mid-July.
“If you look at it from a global perspective, we certainly still see a downward trend this year, and it might extend into next year,” said Peter Sand, senior analyst at Exinita.
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