AIR cargo capacity on routes out of Asia has increased significantly as belly hold space floods into the long-haul trades, reports New York's Journal of Commerce.
However, softening demand from major markets hit by inflation leads to a drop in rate levels.
According to data from WorldACD, cargo capacity has risen 36 per cent over the past five weeks out of Asia, while tonnage carried fell seven per cent, and overall rates on all asian export routes plunged 44 per cent.
International Air Transport Association (IATA) director general Willie Walsh commented that most indicators for the fundamental drivers of air cargo demand were 'weak or weakening.'
One of the leading indicators for the health of Asian air cargo, the Caixin China General Manufacturing PMI, compiled by S&P Global, showed that in April, the PMI dropped 0.5 of a point to 49.5, slipping into contractionary territory for the first time in three months.
Caixin Insight Group senior economist Wang Zhe stated that although China's economy has continued to recover post-Covid crisis, the rebound has been weaker than expected, with manufacturing supply marginally ticking up while demand contracted.
SeaNews Turkey
However, softening demand from major markets hit by inflation leads to a drop in rate levels.
According to data from WorldACD, cargo capacity has risen 36 per cent over the past five weeks out of Asia, while tonnage carried fell seven per cent, and overall rates on all asian export routes plunged 44 per cent.
International Air Transport Association (IATA) director general Willie Walsh commented that most indicators for the fundamental drivers of air cargo demand were 'weak or weakening.'
One of the leading indicators for the health of Asian air cargo, the Caixin China General Manufacturing PMI, compiled by S&P Global, showed that in April, the PMI dropped 0.5 of a point to 49.5, slipping into contractionary territory for the first time in three months.
Caixin Insight Group senior economist Wang Zhe stated that although China's economy has continued to recover post-Covid crisis, the rebound has been weaker than expected, with manufacturing supply marginally ticking up while demand contracted.
SeaNews Turkey