Demand in the airfreight sector is likely to exceed increased capacity over the next few weeks in the run-up to the year-end festive season, Aero Africa executive Jade da Costa has said.
Commenting on a news piece (*) in which uptake is said to be lagging behind enhanced supply, the chief commercial officer (CCO) for the neutral air consolidator said he agreed with yesterday’s report based on the assessment of Dutch data aggregator, Clive Data Services (CDS).
Specifically, CDS warned that although capacity increases were favourable at the moment, they might not keep pace with the momentum of increased supply requirements.
“The capacity increase moving into the end of the year will be outstripped by demand,” Da Costa said.
“Over the last few weeks we have seen carriers cancel certain flights and block space agreements to operate on alternate routes.”
He added that these were Asia Pacific-Europe routes as they were getting a much better yield.
“Some of these rates are +US$ 12 per kg.
“While traditionally we would have been in our peak season, this demand has increased dramatically due to supply chain being affected by ocean.”
He also said that it was very difficult to understand if the cargo was actually peak season or the overflow of high demand on the ocean side.
Da Costa concluded: “In my opinion, rates will still increase towards the end of the year.”
However, he also said that rates were expected to return to mid-year levels.
* Read the related story here: https://tinyurl.com/ua79hx8u