Tuesday, May 21, 2024
Airfreight capacity in Europe hits its limit

Airfreight capacity in Europe hits its limit

Airfreight in Europe has hit capacity for the first time in at least ten years and it has seen some shippers paying sky-high air rates to get their shipment loaded, according to the Freightos International Freight Index.

Freightos Webcargo chief executive officer, Manel Galindo says: “While ocean freight rates are still tanking, airfreight is at peak capacity. For as far back as I can remember, all carriers maxed out on capacity in Europe.

“This triggered holiday-season auctions, with bookings bumped by the highest bidder. In one extraordinary case, I saw spot rates on a transatlantic route hit $13/kg. Prices have stabilised, but this frenzy may happen again in the run-up to Christmas.”

Freightos Webcargo also explains that after Christmas, rates traditionally ease off before picking up again for the Chinese New Year, but with e-commerce growth fueling strong demand, it believes and expects prices to flatline in January instead.

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James Graham

James Graham is an award-winning transport media journalist with a long background in the commercial freight sector, including commercial aviation and the aviation supply chain. He was the initial Air Cargo Week journalist and retuned later for a stint as editor. He continues his association as editor of the monthly supplements. He has reported for the newspaper from global locations as well as the UK.

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