War and Covid Disrupt the Air Cargo Industry
March was a tough month for the air cargo industry.
Capacity and volumes dropped, but airfreight rates continued to rise.
There have been hundreds of flight cancelations directly related to the Covid shutdowns in Asia and the war in Ukraine.
The rise in fuel cost has caused airlines to increase their fuel surcharges. Carriers also are implementing war surcharges.
- Airfreight rates increased 27% compared to 2019 rates.
- Daily spot prices for jet fuel have increased 28% month-over-month.
- War in Ukraine has pushed cargo volumes to decrease by 4.5% year-over-year.
- Spot market is still going up with an increase of 60% compared to last month.