US port strikes boost storm in airfreight market
September’s global air cargo market lived up to analysts’ expectations, becoming the first month of 2024 not to report double-digit growth due to a strong year-on-year comparison, but demand still rose by 9% on last year, according to the latest industry data from Xeneta.
Airlines and forwarders now face a “fine balancing act” between protecting customer relationships and being tempted by short-term revenue gains offered by increasing market volatility, including this week’s strikes in ports on the US East Coast and Gulf Coast.
“September is already old news. October is a whole new ballgame,” said Niall van de Wouw, Xeneta’s chief airfreight officer. “We could see rates rising very quickly on some trade lanes because of the fear-of-missing-out effect (fomo), as air cargo capacity leaves the market for the winter, US port workers go on strike, and conflict in the Middle East escalates, potentially bringing further Red Sea disruption for ocean freight.” (cj)