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The air cargo market continued to unwind 18 months of record gains in October, as the global economy slows and consumers tighten their purse strings.
The industry is well into the typical peak season with little sign of increased shipping activity. Demand and rates are falling at a time when both normally climb.
Volumes in October, measured by a formula that combines weight and shipment dimensions, fell 8% versus the same period last year, the eighth consecutive month of demand decline, market intelligence firm Xeneta reported last week.
The downward trend worsened from September, when volumes contracted 5% year over year and 0.3% versus three years ago. The International Air Transport Association on November 7 released its own lagging data, compiled with a different methodology, showing cargo volumes as a factor of distance slumped 10.6% in September.
Performing at last year’s record levels, which were driven by pandemic-related shortages and supply chain disruptions, was not sustainable, but October demand also fell 3% below the level in 2019 – a weak year for air cargo. And IATA said demand was negative 3.6% versus three years ago.
Read more in an article from American Shipper.