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.

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.