Air Cargo Grounded
The global air cargo market may have to hang on until October for signs of a recovery. A flood of summer bellyhold capacity on major lanes and a 4% drop in demand in April 2023 indicates challenging months ahead, according to new analysis from CLIVE Data Services, part of Xeneta.
Air freight spot rates dropped 41% versus April 2022 as a 7% rise in cargo capacity resulted in lower load factors and a 14th consecutive month of falling volumes year-over-year. CLIVE’s dynamic load factor—which measures global volume and weight perspectives of cargo flown and available capacity—dropped 5% versus 2022 to 57% in April, continuing a more than year-long decline.
Summer capacity had its traditionally significant impact on the air cargo market from Europe to North America, with capacity up 26% in comparison to March 2023. Data showed a 10% decrease in load factor across the North Atlantic to 57% in April, compared to the 67% level recorded to major North American airports in March.
It remains uncertain whether a rise in demand will come in Q4, as the industry anticipates.