Air cargo enjoys third consecutive month of 11% demand growth

Global air cargo market demand rose +11 percent year-on-year for a third consecutive month in March

Buoyant e-commerce volumes and the impact of conflict in the Red Sea on ocean freight services delivered an unexpected first quarter bonus for forwarders and airline, according to Xeneta.

In what are typically weaker months of the year for the airfreight industry, these higher volumes outpaced growth in capacity supply in Q1, which increased by +8% YoY.

Load factor in the opening three months of 2024 rose +2% pts YoY to 59%, and March performance has shown similar growth, edging up to 61%.

Niall van de Wouw, Xeneta: “While this latest monthly data should be balanced against the lower base recorded in the corresponding month of 2023, when we saw weakened global manufacturing activities, Q1 2024 has still seen a surprisingly busy airfreight market.”

Airfreight growth was primarily driven by increased volumes from the Middle East and South Asia as shippers shifted services from ocean to air to avoid Red Sea delays.

van de Wouw: “We also cannot underestimate the importance of e-commerce growth, which shows no sign of abating on its most prominent lanes”

Subsequently, the average global airfreight spot rate in March increased +7% from the previous month to USD 2.43 per kg.

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