Air cargo volumes flat in June as consumers scale back on non-essential goods

According to Xeneta’s latest updates, “Air cargo volumes could drop as consumers scale back on non-essential goods, while shippers are favouring shorter-term contracts in a climate of uncertainty. Niall van de Wouw, Xeneta’s Chief Airfreight Officer, said consumers are looking to save money amid concerns about international trade. Global air cargo volumes were flat in June, up just 1 per cent year on year, while available capacity, measured over the same period, increased 2 per cent. Global air cargo spot rates declined for a second consecutive month in June, down by 4 per cent year-on-year as supply of capacity overtook demand for the first time in 19 months. “The air cargo market is losing altitude amidst so much uncertainty,” van de Wouw said. “For consumers who were already under severe financial pressure from the rise in the everyday cost-of-living, the added cost of tariffs means they are more likely to think twice about buying many of the types of goods which are exported and imported by air.” Despite the disruption from changes to tariffs and e-commerce (de minimis) in the first half of the year, air cargo demand still grew by 3 per cent in that period compared to the same period a year earlier.