Air Cargo Rates Slump But Some Companies See Long-Term Strength

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Air freight is a tiny part of the overall cargo market, but it’s been pushed to the forefront during the pandemic.

, including removing air capacity. Its CEO forecast a global recession.

"The largest single expected contributor in fiscal '23 will be the changes we are making to our express air network as we cut global flight hours," FedEx CEO Raj Subramaniam said on an analyst call in September. Consumers may have eased off of their cooped-up shopping frenzy during the height of the pandemic, but they aren't likely to become much less demanding.

"If you look at the e-commerce segment of air cargo, that has grown significantly and that's probably not going to cycle back because we've all learned to acquire things in a different way," said Rob Morris, global head of consultancy at Ascend by Cirium, an aviation data firm.

 

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A CARgo is something transported by ships or airplanes while a SHIPment can only be transported by cars. WEIRD.

Fake news lol

All there.

Still not big enough

Air cargo may have been a lifeline during the pandemic, but let's not forget that even a broken clock is right twice a day. Only time will tell if this freight frenzy will take flight for the long haul.

Well, if the pandemic taught us anything, it's that air cargo is like a bad ex: you didn't know you needed it until you were in a crisis. But let's be honest, the freight versions of those planes are like cargo pants

With the pandemic in the rear view mirror more are now back to retail shopping like it was before.

Yes, but your chart doesn't show that passengers are the new cargo for airlines. At least, that's how people are treated.

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Don't care.

Air cargo ✈️ can be disruptive to road 🛣️ and rail 🚝 cargo if they make it more affordable ... Key is make more affordable, lower cost higher profits

Loss of the scheduled combination cargo market caused a spike in the air cargo market, which capacity spike will deflate as scheduled combination cargo capacity returns and increases. Speaks more to viability of the spike in P2F conversion demand than the air cargo demand trend.

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