Rates trend downwards in Q2
High inflation, sitting at 8.5% in the US and 8.9% in the eurozone continues to deter consumer expenditure and what is spent is translating into a smaller volume of goods. Air cargo supply has strengthened and largely recovered from its lows in 2020 however a loss of Russian aircraft and significant staff shortages are impeding a full post-pandemic recovery.
Air Freight Tracker written by industry researchers, analysts and associates ̶ Tracks the Air freight rate, supply and Demand on major global freight lanes. This report is also accompanied by an Ocean freight equivalent.
The full tracker – available on www.ti-insight.com – tracks Air freight rates on major lanes and is supported by an analysis of key rate drivers.
Falling Demand and Limited Capacity
In Europe, consumer confidence continues to fall with consumers now facing huge energy bills and gas uncertainty. China’s zero covid policy and economic struggles are hampering both production and consumption. In the U.S. consumption appears resilient but growing inflation is pushing down consumer confidence and the volume of goods demanded.
The Ukrainian conflict has compounded pre-existing capacity issues in the market; the loss of Ukrainian and Russian carriers reduced capacity whilst cancellations in the passenger markets due to staff shortages have reduced the available bellyhold space in the air freight market.
To view the Tracker in full, which includes full analysis, outlook grids by lane and key determinant analysis by lane, please visit https://www.ti-insight.com/air-ocean-freight-rate-tracker/