Demand for airfreight has softened in recent months as the war in Ukraine, Chinese lockdowns, and the cost of living crisis all affect requirements from both businesses and consumers.
Air cargo volumes fell 8% YoY in April, while transatlantic capacity is now higher than it was pre-pandemic.
This rise in capacity is down to airlines starting to introduce summer schedules and increase passenger capacity. This returns some of the belly cargo space which was almost entirely lost during the height of the pandemic.
While the supply-and-demand shift should help to lower rates in the long run, costs remain high as a result of staff shortages at airports and trucking companies. It is also likely that a post lockdown surge in volume out of China will lead to a spike in rates.