Airfreight rates predicted to remain ‘strong’ in the long term

Airfreight rates are expected to remain at an elevated level in the long term while freighters are expected to gain market share, according to a new whitepaper from Transport Intelligence. The whitepaper predicts that there is a high likelyhood of structural change in the airfreight market as a result of the Covid-19 pandemic. The report cites recent predictions from Boeing that the air fleet will grow by 3.2% annually over the coming 20 years, while cargo demand is expected to increase by around 4% each year over that same time frame. “The logic of these numbers is that available belly freight capacity will fall. This suggests that the low freight rates seen in the ten years previous to 2020 have come to an end,” Ti states in the paper. This will also result in increased use of freighters in order to meet demand. Ti also predicts consolidation. “There is likely to consolidation in the airline market, reducing both competition and capacity."<br/>