Breaking

Air Cargo Rates Retreat as Shippers Shift to Shorter Contracts

Air cargo pricing declined for a third straight month, reversing gains that peaked in May as market conditions stabilize. Shippers are increasingly turning to short-term capacity agreements rather than committing to longer contracts, a strategy reflecting uncertainty about demand heading into the final quarter.

Performance among major air cargo verticals has diverged sharply. E-commerce shipments remain robust, while other segments show softer momentum. Emirates SkyCargo is expanding freighter operations to Indian markets, adding weekly services to Chennai, Bengaluru and Hyderabad alongside existing routes to Mumbai and Ahmedabad, capitalizing on sustained regional demand.

Industry analysts warn that constrained capacity could trigger sharp rate increases during peak season despite current softness. Shippers face a delicate balance between lower rates today and exposure to sudden increases if supply tightens unexpectedly.