PPE Continues to Dominate Air Freight
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The global demand for PPE equipment has dominated the air freight industry over recent weeks as governments continue to stock up on much needed protection for their front line workers.
The need has led to an ‘at any cost’ approach, putting much pressure on the air freight industry, which had already been starved of capacity since the beginning of the pandemic.
Air freight has seen a continuous rise in market rates, especially from Asia, where pricing has been pushed to record high levels over the past few weeks.
Airlines are used to relying on passenger traffic as their main source of revenue and with passenger flights dramatically reduced, they have been reacting to the increase in cargo revenues by removing seats and converting passenger aircraft into freight only.
This has introduced additional capacity, which has led to signs that rates may be leveling out now. However, the demand for PPE is continuing to dominate the market for at least the short term future.
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Observations from the recently announced results of IATA’s 2023 Global Dangerous Goods Confidence Outlook.
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