Air Cargo

Air Cargo Demand Stays Strong, But Year-End Peak Unlikely

Air cargo demand growth remained robust in October while capacity stayed flat, pushing load factors higher and rates substantially upward. October volumes increased 6% year-over-year while capacity remained unchanged, lifting cargo load factors by two percentage points to 63%. Average spot rates climbed 29% to $3.11 per kg as fuel costs and supply constraints pressured pricing. The transpacific corridor led growth with Asia Pacific to North America volumes surging 15%, though indicators suggest the traditional year-end peak may not materialize this season. Southeast Asia to North America rates rose 3% monthly to $6.34 per kg, while Northeast Asia to North America climbed 4% to $6. Transatlantic westbound rates jumped 10% to $2.31 per kg as carriers shifted to winter schedules. However, Asia-to-Europe e-commerce volumes declined 61% year-over-year in Q3 following new EU tariffs implemented July 1.