Finally, we are seeing a return to normality for air cargo. The latest industry data from IATA suggests that both demand and capacity showed growth during February and March 2023.
IATA’s February analysis indicated that global demand was 2.9% higher than pre-covid numbers. This is the first time the figures have risen higher than the pre-pandemic levels of February 2019.
Capacity was also up 8.6% on February 2022. Notably, international belly capacity increased by 57% in February, reaching over 75% of 2019 capacity. According to analysts at Clive Data Services, March saw the most significant year-on-year increase so far of 16%.
“An optimistic eye could see the start of an improvement trend that leads to market stabilisation and a return to more normal demand patterns after dramatic ups-and-downs in recent years.”
Willie Walsh, IATA Director General
“I think we’re seeing signs that some forwarders are willing to take a little more risk on what airfreight rates might do. Everybody wants to achieve growth, but if the market is not growing, you have to grab a share from someone else,” said Niall van de Wouw, chief airfreight officer at Xeneta.
“Shippers have regained some ground because of the lower rate conditions, which have affected airlines and forwarders, but it’s not like the bloodbath we see in the ocean market.”