ports

Air Cargo Shippers Hold Back on New Contracts as Rate Peak Signals Emerge

Shippers are postponing tender commitments and extending current contracts rather than agreeing to fresh deals at present rate levels. They are betting that the extraordinary pricing driven by Middle East disruptions has peaked. Global air cargo spot rates averaged $3.40 per kg in May, reflecting a 41% year-on-year increase, though market softening signals are emerging. Demand grew 4% annually while capacity recovered to 1% above prior-year levels. Industry analysts indicate shippers are accepting extension surcharges as a holding strategy, awaiting clearer normalization signals before committing to longer-term agreements. Executives anticipate rate declines will be gradual rather than sharp, with year-on-year comparisons potentially turning negative as June data emerges.