Peak season surcharges and increases in spot rates are expected, said Niall van de Wouw, Chief Airfreight Officer, Xeneta. Shippers and forwarders ill-prepared for this year’s peak season may find themselves at the mercy of the market, he said. “There is a consensus it will be a hot fourth quarter for air cargo in many Asian markets,” van de Wouw added. Demand in June, measured in chargeable weight, was up 13 per cent YoY, continuing the upward trend seen throughout the first half of 2024. In contrast, cargo supply grew at its slowest pace in 2024, edging up only 3 per cent year-on-year. Airlines are looking ahead to air cargo’s fourth quarter out of Asia as spot rates are in a fix as prices are predicted to go sky high. With a backdrop of more demand and less capacity, industry analyst Xeneta has warned that shippers and forwarders seeking capacity during the fourth quarter may find themselves “at the mercy of the market”, especially if they looking to move shipments out of Asia Pacific. This market warning comes as Xeneta has reported a sixth straight month of double-digit year on year growth in June, although it noted that the comparison is with an overall weak 2023 market and it expects lower demand growth YoY in the second half of 2024 because the Q4 of 2023 was stronger than the previous quarters of the year.
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