ACCORDING to clive Data Services, an increase in longer-term contracts between shippers and freight forwarders may suggest that the latter are looking to secure air cargo volumes, possibly due to a hunt for volume, reports London's Air Cargo News.
CLIVE's parent firm, Xenia, chief air freight officer Niall van de Wow believes this trend indicates a shift towards a more stable global air cargo market, with forwarders seeking more common ground with shippers.
The number of six-month agreements rose from 23 per cent in the fourth quarter of last year to 36 per cent in the first quarter of 2023.
'I think we're seeing signs that some forwarders are willing to take a little more risk on what air freight rates might do because they don't expect the market to drop much further. Everybody wants to achieve growth, but if the market is not growing, you have to grab a share from someone else,' said Mr van de Wow.
'The fact that we see longer-term contracts between shippers and freight forwarders is a signal that the market is stabilizing. Shippers have regained some ground because of the lower rate conditions, which have affected the airlines and forwarders, but it's not like the bloodbath we see in the ocean market.'
SeaNews Turkey
CLIVE's parent firm, Xenia, chief air freight officer Niall van de Wow believes this trend indicates a shift towards a more stable global air cargo market, with forwarders seeking more common ground with shippers.
The number of six-month agreements rose from 23 per cent in the fourth quarter of last year to 36 per cent in the first quarter of 2023.
'I think we're seeing signs that some forwarders are willing to take a little more risk on what air freight rates might do because they don't expect the market to drop much further. Everybody wants to achieve growth, but if the market is not growing, you have to grab a share from someone else,' said Mr van de Wow.
'The fact that we see longer-term contracts between shippers and freight forwarders is a signal that the market is stabilizing. Shippers have regained some ground because of the lower rate conditions, which have affected the airlines and forwarders, but it's not like the bloodbath we see in the ocean market.'
SeaNews Turkey