CARGO AND PASSSNGER
Are International Air Freight Quotes & Air Prices Changing?
Air freight usage is growing slowly, with less than 1% growth in 2015 among the world’s top freight forwarders, according to Transport Intelligence. The International Air Transport Association (IATA) said that air freight growth only hit 2.2% in 2015, down from 5% in 2014. One reason for this is increased reliance on ocean freight, which is growing more and more reliable.
Ocean freight has been getting cheaper, driven by massive ocean freight overcapacity, with up to 75% declines on key routes. On the other hand, air passenger travel has grown strongly, pushing carriers to create more and more planes. As a result, there’s more belly cargo space – space under the place to store air freight. However, this means that less than half of air freight capacity is being used.
The result for air cargo shipments is that most companies that need to import do everything in their power to take advantage of cheap ocean freight quotes, leaving only the most urgent shipments for air.
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