IATA

Despite ongoing geopolitical headwinds, the majority of airfreight analysts say that 2024 may herald the start of a new economic growth cycle for the global air cargo industry.

Air cargo remains challenged by volatile conditions.

Despite a list of lingering challenges, there are a number of positive factors driving today’s air cargo markets, including the increase of airfreight fleets across different regions as well as returning passenger flights—which has only increased cargo capacity and market reach. Here’s what air shippers need to know as we roll through 2023.

Even with a strong recovery in revenue, the IATA maintains that air cargo did not meet its full growth potential last year. In the meantime, tight capacity, labor shortages, infrastructure shortfalls—and now the Russian invasion of Ukraine—continue to cloud the forecast in this vital sector.

Air rates are feeling even more upward pressure than usual from reduced passenger jet capacity—which could be made worse by omicron fears—and congestion due to labor shortages among overwhelmed ground crews.

Volumes and service soar to record highs.

Air cargo continues steady climb in volumes, rates.

High demand for cargo space created capacity constraints and consequential high rates over the past year on a majority of lanes. And while it appears the height of the pandemic crisis is in the rear view, shippers most likely won’t see relief from elevated rates until demand and available capacity level out.

Global airlines are scrambling to meet the gap between cargo demand and available lift by all means possible.

From strained global freight networks to rapid e-commerce growth, the logistics industry and its service providers around the world have demonstrated how flexible and systemically relevant they are as they keep the global supply chain flowing.

Top global service in the face of blistering COVID-19 headwinds.

While COVID-19 has brought extraordinary challenges to the air cargo community, we’re now starting to see some opportunities emerge. Here’s how carriers are responding.

While there was optimism due to easing trade tensions at the end of 2019, new complications now find the world’s air carriers back on their heels.

The combination of a slumping U.S. manufacturing economy, a nervous trade war between the world’s two largest economies, a 40-day labor strike that shut down General Motors Corp., and a general economic malaise nervously settling in over much of the nation is causing transport executives and shippers to nervously change their economic game plans for 2020.

Ongoing trade tensions, pricing volatility and slack demand have kept the air cargo market on hold for most of this year. However, industry analysts say that a new set of factors could reverse the trend by peak season.