The International Air Cargo Association said at this week's webinar: China's expansion of consumption, pent-up demand and replenishment of major destination markets, as well as improved economic conditions will boost trade demand, which will spread to the air cargo market by the end of the year, once the current economic challenges of inflation and energy costs can be overcome, the fourth quarter of 2023 and into 2024 are very optimistic about the global economic outlook for international trade and air cargo.
Willie Walsh, director general of the International Air Transport Association of, is equally bullish on its air cargo prospects, remaining cautiously optimistic despite a challenging start to the year due to the weak business environment. Walsh said, "China's transition from a zero COVID policy is much faster than expected and is stabilizing production conditions in the largest source market for air cargo. As companies increase their engagement with China, this will provide a much-needed demand boost. "
The Caixin China General Manufacturing Purchasing Managers Index (PMI) showed that the index returned to growth in February for the first time in seven months, and consumer confidence is recovering as production and new orders steadily rise.
February trading volume strengthens key deals
As a key link in the air cargo chain, freight forwarders will face greater challenges in 2023 than airlines and airports. Due to the rapid transit time of air cargo, shorter demand periods are often used in comparisons. When comparing the last two weeks of February with the first two weeks, WorldACD data show that demand from Asia to Europe increased by 16%, while demand from Asia to North America increased by 10%.
The Baltic Air Index showed that the Shanghai-Nordic average exchange rate rose 13 per cent month-on-month this week to $3.29 per kilogram, while the Shanghai-North America spot rate rose 3 per cent to $4.79 per kilogram.
Trans-Pacific rates rose about 10% month-on-month last week, while China-Nordic rates rose 3% month-on-month, according to Freightos.com air cargo data.
Data WorldACD by Netherlands-based analysts showed that the early Lunar New Year interrupted the traditional air cargo peak in January, and global air cargo demand, in terms of cargo ton-kilometers (CTKS *), fell 14.9 percent from January 2022 (international demand fell 16.2 percent). But demand from the Asia-Pacific region to the Middle East, the United States and Europe recovered strongly in early February, then stabilized for the rest of the month.
there is still plenty of under-deck cargo capacity to restart as airlines increase long-haul passenger flights to meet booming travel demand, year-over-year comparisons remain poor as demand spiked significantly in January 2022, when seaborne was heavily congested and air freight rates will approach pre-pandemic levels as the aviation market normalizes, but there is still some way to go before all the grounded aircraft dust settles.
Forwardernet.com
