Weak start to 2024 for the Transatlantic air cargo market

According to Xeneta‘s report released on Friday, the Transatlantic air cargo corridor has had a weak start to the year, which is in stark contrast to the global market.

Demand from Europe to North America dropped by 4% compared to last year and 5% compared to 2019. This decline mirrors a 4% decrease in ocean freight demand in January.

In contrast, the global air cargo market experienced robust growth of 11% year-on-year, driven by disruptions in the Red Sea and high e-commerce demand from China.

This trend marks a reversal from late 2023 when the Transatlantic corridor outperformed global growth. Despite an increase in cargo capacity, spot rates fell by 27% year-on-year in February.

The market is expected to face further pressure on rates with the onset of summer schedules. Freight forwarders are increasingly relying on spot rates, with 46% of volumes shipped under them by March 10th.

As rates continue to decline, carriers may see revenues return to pre-pandemic levels, with a 38% decrease in air cargo revenues in the first two months of 2024.

Read the full report HERE.