AIRFREIGHT rates remained firm in October despite demand growth not reaching the highs many had expected, meanwhile securing capacity could become more of a challenge in the future, reports London's Air cargo News.
TAC Index editor Neil Wilson said in a monthly column that the global Baltic Air Freight Index calculated by TAC Data rose 8.1 per cent over the four weeks to November 4, leaving it up by 10.9 per cent compared with a year ago.
Rate improvements were led by markets out of Asia, with the November outbound index for Hong Kong improving by 8.2 per cent compared with October and gaining more than 10 per cent versus last year.
'Outbound Shanghai was up more - by 12.6 per cent month on month (MoM) to leave it up by an even more impressive 22.4 per cent year on year,' said Mr Wilson.
'Rates on other lanes out of Asia, such as from India, Vietnam and Thailand, also remain a long way ahead of 2023 levels.'
However, performance was not quite as strong as many had expected.
'As a result, October delivered another in a series of solid gains this year, especially on big export lanes out of Asia to Europe and North America,' said Mr Wilson.
'However, it was not as spectacular as some had been expecting, especially for a period when the market enters its traditional peak season in the runup to Thanksgiving and Christmas holidays.'
While 2024 was defined by soaring demand, the coming years could be defined by issues securing capacity.
Mr Wilson pointed to production issues faced by Boeing for new freighter production and a lack of feedstock for conversions.
'So, this year's peak season may not be quite so strong as expected. However, with airfreight rates up while average jet fuel prices were down some 20.7 per cent over the 12 months to November 1, according to Platt's data, 2024 should still prove a considerably profitable year for airline carriers,' wrote Mr Wilson.
'In addition, with capacity looking tighter again in future, the air cargo market looks potentially even stronger going forward. That is of course if there are no major geopolitical developments and big changes to global trade patterns.'
SeaNews Turkey
TAC Index editor Neil Wilson said in a monthly column that the global Baltic Air Freight Index calculated by TAC Data rose 8.1 per cent over the four weeks to November 4, leaving it up by 10.9 per cent compared with a year ago.
Rate improvements were led by markets out of Asia, with the November outbound index for Hong Kong improving by 8.2 per cent compared with October and gaining more than 10 per cent versus last year.
'Outbound Shanghai was up more - by 12.6 per cent month on month (MoM) to leave it up by an even more impressive 22.4 per cent year on year,' said Mr Wilson.
'Rates on other lanes out of Asia, such as from India, Vietnam and Thailand, also remain a long way ahead of 2023 levels.'
However, performance was not quite as strong as many had expected.
'As a result, October delivered another in a series of solid gains this year, especially on big export lanes out of Asia to Europe and North America,' said Mr Wilson.
'However, it was not as spectacular as some had been expecting, especially for a period when the market enters its traditional peak season in the runup to Thanksgiving and Christmas holidays.'
While 2024 was defined by soaring demand, the coming years could be defined by issues securing capacity.
Mr Wilson pointed to production issues faced by Boeing for new freighter production and a lack of feedstock for conversions.
'So, this year's peak season may not be quite so strong as expected. However, with airfreight rates up while average jet fuel prices were down some 20.7 per cent over the 12 months to November 1, according to Platt's data, 2024 should still prove a considerably profitable year for airline carriers,' wrote Mr Wilson.
'In addition, with capacity looking tighter again in future, the air cargo market looks potentially even stronger going forward. That is of course if there are no major geopolitical developments and big changes to global trade patterns.'
SeaNews Turkey