Love is in the air - impact of Valentine’s Day on air freight

Love is, quite literally, in the air as North America gears up for Valentine’s Day on February 14 through the import of fresh-cut flowers from Latin America.

"The largest exporters of fresh-cut flowers into the U.S. from Latin America are Columbia and Ecuador with Miami serving as the main gateway for onward distribution across North America," says the latest update from Xeneta.

In the week ending February 4, the air cargo spot rate from Columbia and Ecuador to Miami increased by 37 percent to $1.45 per kg compared to three weeks prior before the start of the peak season, the update added.

"Despite carriers increasing capacity through additional flights, it has not been enough to keep pace with the surge in demand as measured by air cargo chargeable weight, which soared 128 percent in the three weeks ending on February 4. Capacity increased by 81 percent in the same period. The peak season surge saw the dynamic load factor, which is measured through the volume and weight of cargo flown against available capacity, remain very high on this corridor at 90 percent for the week ending February 4."

Flower power boosts volumes
Despite interest rates remaining elevated in the U.S., the buying power of flowers has reached new heights this year with air cargo volumes from Columbia and Ecuador to Miami increasing by almost 10 percent between January 15 and February 4 compared to the same three-week period in 2023, the update added.

"In 2023, volumes increased by only three percent compared to the corresponding period in 2022."

Despite this increase in demand, carrier revenues are still hard-fought. "While the air cargo spot rate from Columbia and Ecuador to Miami in the week ending February 4 was 14 percent above the pre-pandemic levels of 2019, they were 11 percent lower than the corresponding week in 2023."

The strong demand for flowers has still seen overall carrier revenues on the Columbia and Ecuador to Miami corridors for the three weeks ending February 4 remain on par with the corresponding weeks in 2023. "This is in contrast to the negative year-on-year revenue growth (one percent) experienced in the Valentine’s Day peak season of 2023, which had followed an impressive 31 percent growth in 2022."

Demand could blossom further for Mother’s Day
Valentine’s Day is only the first peak season of the year for fresh-cut flowers on this corridor with Mother’s Day in early May being the next period of traditionally higher demand, the update added.

"If the momentum the market has witnessed in recent weeks continues, we could see revenues for Mother’s Day 2024 being slightly higher than the Valentine’s Day peak season this year and Mother’s Day 2023. This is based on the growth in U.S. consumer spending, which was a primary factor in the increase of real GDP during Q4 2023, supported by a strong labour market."