Air Cargo

“ For example , numbers from the air transport data source CAPA / OAG show that by 2024 , the US was the 13th largest origin / destination for Chinese flights , down from

Global air cargo volume climbed by a double-digit percentage for the sixth straight month in June . Shutterstock . com

6th in 2019 ,” Cullen wrote in a report in early July .

Cullen attributed the capacity shortfall partly to US government policy . US airlines earlier this year pressed the Biden administration to refrain from granting greater market access to Chinese airlines , citing “ existing harmful anti-competitive policies .”

While the US approved an increase in China ’ s weekly round trip flights from 35 to 50 from March 31 , this is still far below the 150 weekly round trips allowed by each side before limits were imposed in early 2020 .

Given the market turbulence and the potential for a spot rate boom in the fourth quarter , van de Wouw said shippers on the trade lanes out of Asia are shifting toward contracts of six months or more to avoid any extreme freight rate fluctuations during the upcoming air cargo peak season .

“ With a mix of ocean shipping chaos , an upturn in manufacturing activities and fear-of-missing-out , a delicate balance of short- and long-term contracts is on everyone ’ s mind ,” he said . “ But whatever happens , you ’ re going to be paying a lot more to ship goods from Asia Pacific once September comes .”

email : greg . knowler @ spglobal . com

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