Source: Journal of Commerce

The global air freight market has reached its peak season, with demand outstripping supply and pushing shipping rates to new highs in 2024. Key routes, including Shanghai to North America and Shanghai to Europe, have experienced significant rate increases.

1. Key Market Highlights:

• Shanghai to Europe: Rates hit $5.07/kg, the highest in nearly two years.
• Shanghai to North America: Rates surged to $6.61/kg, the highest so far this year.
• Trans-Atlantic Routes: Rates climbed to $2.64/kg, marking an 18-month high, according to the Baltic Air Index (BAI).

TAC Index confirmed the upward trend in spot rates as the market entered its peak. However, overwhelming demand, particularly from Chinese e-commerce platforms, has made it challenging for freight forwarders to secure space for their regular customers.

2. Strong Growth on Major Trade Routes

According to the International Air Transport Association (IATA):

• Asia-Pacific Airlines: Demand grew 13.4%, while capacity increased by 9.3% year-over-year.
• North America: Demand rose 9.5%, but capacity grew only 5.8%.
• Europe: Demand increased 7.6%, while capacity expanded by just 3.9%.
• Middle East: Demand was up 4.5%, with capacity growing 0.8%.
• Latin America: Led the market with a 18.5% increase in demand, outpacing a 5.8% rise in capacity.

3. Top Air Freight Hubs

WorldACD Market Data highlights key hubs driving global air freight growth:

• Hong Kong International Airport: The world’s busiest air cargo hub saw a 15% increase in tonnage in October. Its newly launched third runway will boost capacity to 10 million tons annually over the next decade.
• Miami International Airport: Recorded a 31% year-over-year growth, securing its position as the second-largest growth hub.
• Dubai International Airport: Achieved a 45% increase in tonnage, ranking third globally.

4. Challenges and Opportunities

IATA warns that geopolitical and economic changes, including potential new tariffs in 2025 targeting Canada, China, and Mexico, could disrupt global supply chains. However, with strong growth in demand, 2024 is expected to remain a robust year for air cargo.

As a trusted logistics partner, Seahorse Shipping provides tailored air freight solutions to help businesses navigate the complexities of peak season.

📩 Contact us today to optimize your air cargo operations and stay ahead in a dynamic market!

#AirFreight #GlobalShipping #PeakSeason #LogisticsSolutions #Seahorseshipping #TradeUpdates #Seahorse