With the slowdown of the global economy, the demand of the maritime market has dropped sharply, which has led to a precipitous drop in freight rates. This is also true in the air cargo market.

Although the so-called peak freight season has entered, there seems to be no sign of the existence of the peak season this year. Because demand and freight are declining.

The market intelligence company Xeneta reported last week that the freight volume of the air transport market in October was 8% lower than the same period last year. The downward trend has intensified since September, with freight volume down 5% year on year, 0.3% lower than three years ago.

Moreover, some data show that the demand in October this year is 3% lower than the level in 2019. You should know that 2019 is the worst year for the air cargo market.

It is understood that many airlines have reintroduced more passenger transport capacity in summer. However, the current drop in demand will reduce the full load rate and profitability of aircraft.

Normally, the air freight between China and the West Coast of the United States is between US $2 and US $3 per kilogram, and about US $5 per kilogram in peak season.

But, according to Freightos, the air freight price this year is about $6. Compared with the US $13 per kilogram last year, it has dropped a lot.

According to data from Xeneta, the spot price of air transportation from Europe to the United States in October was $3.11 per kg, a decrease of 27% compared with the level in 2021, while the freight from Asia to Europe decreased by 25% to $5.09 per kg.

Besides, air transport logistics professionals have lowered their expectations for 2023, because consumers' spending on goods has decreased, export manufacturing contracts and goods have turned to cheaper marine services, and the number of seats on many trade routes is again abundant.

GLA would like to remind the freight forwarders that there is a weakness in both the sea and air markets. You need to pay attention to the latest logistics information in time to avoid delay in delivery of goods.