News / As air freight rates start to fall, how long can passenger-freighters stay in the air?

16/03/2021

Air freight rates have started to fall, triggering a debate on how long the ‘new’ capacity might stay in the market.

According to the latest TAC Index data, rates per kg from China to the US are down some 5%, to $5.09 all in, while to Europe they have edged down to $4.06 – despite fuel prices creeping up.

They still, however, remain ‘elevated’, with ‘normal’ February rates traditionally below $4 to the US and $3 to Europe.

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Steve Manser
March 16, 2021 at 9:53 pm
Not sure where people are seeing air cargo rates reducing – availability is at a premium and pricing increasing on a daily basis.
Both scheduled and Charter capacity is scarce ex Asia to both Europe and the US, so the requirement for passenger freighters will remain around for quite a while yet.
Major freight forwarders are scrambling to lock in long term charter capacity through to this time next year to ensure they can meet their customers demands/requirements.

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