Air cargo freight is losing demand – what happened?

Air cargo freight is losing demand – what happened?

Shippers are increasingly choosing sea transport, so air freight volume is decreasing. What exactly affects demand, and what will it lead to?

What do the statistics say?

Air cargo freight volumes fell by 9% year-on-year in July and continue to trend downward. PartnerTrade specialists have noticed this trend and are publishing clarifications on the situation in the logistics chain today.

Why is the demand for air freight declining?

The following factors influenced the decline in interest in air cargo transportation since March:

  • the long war in Ukraine;
  • inflationary pressure limiting consumer spending;
  • lack of personnel in airlines and airports;
  • reduction of congestion on some sea routes.

According to data from Sea-Intelligence, the global supply chain’s reliability improved compared to June last year. This happened for the first time since the beginning of the pandemic.

Ports in China returned to the usual work condition, while congestion on the US West Coast eased in the second quarter of this year. Since more shippers are joining sea transportation, air freight has become less favored by 6% compared to last year.

If ships continue to improve shipping cargo without delays at ports, demand for air freight will continue to decline in favor of sea shipping. After all, customers increasingly rely on the reliability of the sea shipment schedule.

How to proceed?

Shippers are choosing less expensive shipping options (such as container shipping) to reduce the impact of freight costs on their income. And, even if the tariffs for air transportation fall, the state of affairs will not change.

Although air transport significantly speeds up the transportation of goods, it is not enough to alleviate supply chain problems. PartnerTrade knows how to find the best option for cargo freight in terms of time, route, and price. Contact our managers to calculate the shipping cost now.


Why do shippers not want to transport goods by plane?

Their choice was influenced by global problems and a return to more economical sea freight.

What is the alternative to air transportation?

Sea freight is a competitive and cheaper option.

Why do shippers choose sea transportation?

It is more economical to ship goods by sea. In addition, congestion in major ports has stabilized, and the transportation schedule is becoming more reliable.

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