Demand is largely stable with some regional delays
Asia
Expect U.S. demand in April to remain stable for general cargo, while ecommerce goods may continue to increase moderately.
In Europe, expect demand to be similar to the United States, with a potential moderate increase if the conflict in Ukraine fully ceases. Capacity is expected to stay stable alongside demand. Rates should remain stable but may experience sudden increases due to political uncertainties influencing the market.
Europe
Air cargo shipping from Europe to North America is facing several challenges. New emergency security measures by the Transportation Security Administration in the United States and Transport Canada have disrupted cargo originating from Europe and the Commonwealth of Independent States (CIS) region.
Major European hubs, like Schiphol and Liege, are expanding freighter capacity to manage peaks, while U.S. carriers contend with labor shortages affecting cargo handling at key airports, like Memphis and Louisville. These operational issues are leading to delays and rate volatility.
LATAM
São Paulo/Guarulhos International Airport (GRU) and Viracopos International Airport (VCP) are operating smoothly. Other major airports in Latin America, such as Mexico City International Airport (MEX) and El Dorado International Airport (BOG) in Bogotá, are experiencing delays due to increased cargo volumes and staffing challenges. These issues are causing significant operational inefficiencies.
North America
The market from the United States to Latin America has certainly improved compared to 2024, but the market can be dynamic from week to week. Air cargo requiring freighter aircraft sees the most volatility, while cargo that can fly on passenger flights has more flexibility. For urgent cargo, spot market rates are elevated, but cargo that has some degree of flexibility can find lower rates.
Airlines are adding passenger flights in the Trans-Atlantic market to support increased travel demand. These flights started entering the market in late March and will increase gradually over time. By May, the full summer schedule will be in place until travel demand tapers late in the third quarter.
South Asia, Middle East, Africa (SAMA)
Major airports such as Shanghai and Hong Kong are currently experiencing increased congestion, impacting schedules and transit times. Political instability and logistical challenges in countries like Bangladesh have caused airfreight rates to surge.
The Middle East region is heavily impacted by geopolitical conflicts, particularly around the Red Sea and Suez Canal. Airspace closures have led to suspended flights to Iraq, Iran, and Jordan, causing significant delays.
Oceania
Capacity is stable to and from Oceania, with some flights shifting to the Northern Hemisphere for the summer holiday season. The market is responding well to demand and operations are smooth. Though demand is historically softer at the end of Q1 and into Q2, this year started softer, with subdued and stable rate levels. Anticipate rate volatility for cargo shipping to Europe and the United States, as some congestion is predicted at transit points by late April.