‘Air cargo records lowest rates since March 2020’

Tension is mounting in the global air cargo market, which is heading into weaker summer months with general air freight rates falling in May to their lowest level since March 2020, indicated the latest weekly market analysis by CLIVE Data Services, part of Xeneta. The global air freight spot rate fell 40 per cent in May from a year earlier, reaching its lowest level in over three years of US$2.41 (Dhs. 8.85) per kg, just days after IATA predicted airline cargo revenues and yields could fall by more than 31 per cent and 29 per cent, respectively, in 2023. Softening global air cargo demand saw a less severe YOY drop of -1 per cent in chargeable weight in May, the smallest monthly decline in the past 12 months, but the influx of belly capacity for the peak summer leisure travel market applied more downward pressure on rates.