2023, what's in it for air cargo?
Photo: Delta Cargo
Air cargo professionals must get ready for a further drop in demand, expect more capacity to come into the market, and expect shipping companies to lure cargo away from the air.
Judah Levine, Freightos: "Demand will likely decrease in 2023." He expects belly capacity to continue to rebound as passenger travel recovers, and new capacity to come online.
Neel Jones Shah, Flexport: "Even with a deteriorated market, global average air freight rates will remain around $2.60-2.80/kg, about 35-50% above pre-Covid levels."
Lower ocean costs and better-scheduled reliability may tempt some shippers to make a modal shift, according to Xeneta.
Xeneta CEO Patrik Berglund: “The shift wouldn’t be too significant for ocean carriers, but it would strongly impact air, where cargoes are far smaller.”
Andrew Matters of IATA: “It is easy to think about the downside risks of the forecasts. I encourage you to think about the upside risks as well. If, for example, the conflict in Ukraine was resolved quickly."
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