WHEN reflecting on recent developments in the air cargo industry, those prone to anxiety were often advised to divert their attention elsewhere, reports London's Flight Global.
Generally, both yields and demand have been on a downward trajectory since the Covid crisis squeezed airline capacity and disrupted shipping, temporarily positioning air cargo as a financial saviour for many airlines.
Although certain air cargo indicators improved towards the end of 2023, the industry braced itself for declining rates in 2024, as ongoing economic signals hinted at a challenging demand landscape.
Concurrently, there has been a resurgence in belly capacity returning to the market, particularly in Asia, easing supply constraints and reinforcing the notion that industry fundamentals are reverting to pre-Covid crisis norms.
However, despite the perception of air cargo being at the mercy of external forces, its fate isn't solely dictated by outside factors.
Addressing delegates at the International Air Cargo Association's executive summit in Brussels last November, Xeneta chief air freight officer Niall van de Wouw highlighted that historically, the reliability of shipping has been a primary driver of modal shifts to air freight.
This influence surpasses factors like pricing (even during the peak of the pandemic when air freight costs were several times higher than shipping) and the environmental impact of various transportation modes.
SeaNews Turkey
Generally, both yields and demand have been on a downward trajectory since the Covid crisis squeezed airline capacity and disrupted shipping, temporarily positioning air cargo as a financial saviour for many airlines.
Although certain air cargo indicators improved towards the end of 2023, the industry braced itself for declining rates in 2024, as ongoing economic signals hinted at a challenging demand landscape.
Concurrently, there has been a resurgence in belly capacity returning to the market, particularly in Asia, easing supply constraints and reinforcing the notion that industry fundamentals are reverting to pre-Covid crisis norms.
However, despite the perception of air cargo being at the mercy of external forces, its fate isn't solely dictated by outside factors.
Addressing delegates at the International Air Cargo Association's executive summit in Brussels last November, Xeneta chief air freight officer Niall van de Wouw highlighted that historically, the reliability of shipping has been a primary driver of modal shifts to air freight.
This influence surpasses factors like pricing (even during the peak of the pandemic when air freight costs were several times higher than shipping) and the environmental impact of various transportation modes.
SeaNews Turkey
