Market dynamics are tightening in European air freight markets and as a result, price pressure is increasing, leading to more price rises.
US airports volumes show strong year on year growth. This is increasing the demand side pressure on rates. IATA shows that demand (Cargo tonne km [CTK]) has grown faster than supply (Available tonne km [ACTK]) for 11 consecutive months (Nov 23 – Sep 24). This means spare capacity has been falling in the European market for nearly a year.
The effect is increased price pressure from continued falls in the excess capacity of the air freight market. Whilst rates may drop post peak, falling excess capacity is likely to keep rates elevated y-o-y as we head into 2025, and potentially cause further rate rises in Q1 should capacity continue to fall.
Source: Transport Intelligence
Author: Transport Intelligence
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