Air, Freight News

Airlines are full, says freight rate firm

[ December 5, 2017   //   ]

Rate management specialist Freightos WebCargo says that air cargo in Europe is currently running at full capacity, the first time in at least ten years that this has happened.

Shippers are paying sky-high air rates to get cargo loaded, in one case $13 per kilo on the transatlantic route, claims chief executive, Manel Galindo.

He added that this is in stark contrast to ocean freight rates, which are “tanking”.

Moreover, he predicts that the traditional fall-off in rates that normally happens after Christmas – before picking up again in the Chinese New Year – may not happen this year, thanks to strong e-commerce growth.

The International Air Transport Association meanwhile predicts that global airfreight demand will rise 4.5% in 2018, rather less than current growth rates, which it attributes mainly to industry restocking inventory in a hurry.