ports

Air Freight Rates Defy Gravity as Capacity Recovery Lags Demand

Global air freight rates remain far above historical averages despite steady capacity gains. Freighter capacity climbed 4% month-on-month in May and an additional 2% in early June, with Asia-US routes showing particular strength. Cathay Cargo reported its worldwide capacity has nearly returned to pre-disruption levels, though Middle East operations including Dubai and Riyadh services remain suspended. The Baltic Air Freight Index eased just 2.1% over four weeks ending June 1, remaining 32.4% above year-ago levels. WorldACD data reveals the core problem: tonnage growth slowed to 3% year-on-year in May while average rates stayed 36% above prior-year figures. Industry executives attribute the disconnect to Gulf carriers still operating below full capacity following regional disruptions, with roughly 30% of their lift still offline.