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Air Freight Services
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Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices

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Intelligence on category covers the following aspects market outlook, supply market, SWOT analysis, Cost components & Price outlook, Demand and supply drivers, Engagement Models and Procurement Best Practices

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Abi will answer all Air Freight Services related
procurement queries with relevant data points

Abi - AI powered digital procurement assistant

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Get up-to-date market and supplier info on Air Freight Services to help you build

Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices

1

Intelligence on category covers the following aspects market outlook, supply market, SWOT analysis, Cost components & Price outlook, Demand and supply drivers, Engagement Models and Procurement Best Practices

manage-risk

Assess Supplier Risk based on key risk and compliance parameters

1

Supplier assessment covers the following parameters Financial Risk, Ethical, Labor, Environmental Compliance, IT Security.

2

Supplier assessment is powered by world’s leading data partners including D&B, CreditSafe, Dow Jones, Refinitiv, Orpheus

discover-supplier

Identify right fit suppliers based on your selection criteria including revenue, capabilities, certification, geography

1

Select suppliers based on industry, country, classification from a database of 4.2 mn suppliers. Get detailed supplier profiles with supplier capabilities, revenue, certifications, risk ratings

assess-category-perforamnce

Benchmark your category performance against peers and the market

1

Measure category performance on 15 key parameters across cost, risk and strategy KPIs

source-market-indices

Get information on key factors affecting your supply

1

Source Macro Data and Market Indices information from leading data sources across these key areas - Labor Rates, Currency, Energy, Country Risk, Trade Flow/Transportation, Port Data, Tariff, Weather and Epidemics

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Report Coverage

  • Air Freght Cost Index-Trend Analysis
  • Global Capacity–Demand Analysis
  • Global Trade Dynamics
  • Regional Market Snapshot-North America, Europe, Asia
  • Cost Structure Analysis

Table of contents

  1. Global Air Freight Executive Summary
  2. Executive Summary
  1. Global Air Freight Market Analysis
  2. Air Freight Market Analysis
  3. Regional Market Analysis
  4. Cost of Operation: Air Freight Service
  5. Freight Movement Data: Major Airports
  6. Jet Fuel Trends
  1. Global Air Freight Price Trend Analysis
  2. Global Air Freight Rates
  3. Air Freight Rates Trending
  4. Pricing Models
  5. Air Freight Business Engagement Framework
  1. Global Air Freight Supplier Analysis
  2. Supplier pricing mechanism
  3. Profiling of Major Freight Forwarders
  4. Analysis of Global Air Freight Forwarders
  5. Analysis of Major Cargo Airline

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Global Market Outlook on Air Freight Services

The logistics and transportation sector is fast-growing with overseas transportation services being in high demand. Air freight is used to send goods to other countries quickly and conveniently. 3PL companies are growing fast and for international transportation; they offer air cargo, belly cargo, and freighter cargo services. Apart from shipping regular goods, they also ship special goods that require temperature-controlled environments. The popularity of freight forwarding services has helped boost air freight services. Carrier airlines operate cargo flights through air freight trade lanes from one airport to another. 

The air freight market was estimated to be worth $99.78 billion in 2020. The air freight market size is expected to increase to $175.16 billion by 2025. The trends show that the market is expected to grow at a CAGR of 9.83%. 

The air freight market demand is being driven by the North American market with the US being the main contributor. The air freight market forecast underlines that the e-commerce sector would help improve the performance of the air freight market. With e-commerce fulfilling orders worldwide, products are moving across the globe through air services.

The air freight services industry is segmented as follows:

  • In terms of service, it is segmented as express service and regular cargo service. Express services are growing fast with more and more customers using e-commerce, preferring quick delivery of products and willing to even pay a premium for it.
  • In terms of region, the market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa.
  • In terms of the end-user for the market, it is segmented into consumer electronics, retail, food and beverages, pharmaceuticals, healthcare, chemicals, third party logistics, and manufacturing.

The COVID-19 pandemic has affected this sector. Lockdowns and flight restrictions brought down the market in 2020. The commencement of vaccination drives is expected to help improve things in 2021. The top players in the air freight market are Cathay Pacific, Bollore Logistics, UPS Airlines, China Airlines Cargo, Able Aerospace, DHL Aviation, Emirates SkyCargo, Korean Air Co, DB Schenker, Singapore Airlines Cargo, FedEx Corporation, etc.    

In Q1 2018, average global air freight prices increased by 5.44 percent compared to the same period last year. Freight rates steadied from Q2 2018, the same trend was expected to continue.

Strong demand in the air freight market had a strong impact on air freight rates in H2 2018 and considering tight capacity, the impact was expected to extend in Q3 and Q4 2018.

While specific lanes could witness double-digit growth in air freight rates moving into the peak season, trans-pacific eastbound and westbound routes, which have a volatile nature, are expected to face an increase of around 5 percent.

Carriers and freight forwarders are willing to negotiate on established lanes of US–EU since the market fluctuation is minimal and the volumes are high. However, on lanes connecting to Asia, negotiation is challenging since the market is highly unpredictable and risky.

trends-global-air-freight

 

Air Freight Market Analysis

  • In 2018, the difference between demand and supply index started to reduce with the annual growth of 3-4 percent in shipments volume. The capacity available in the market gradually increased, however starting mid of 2018, market demand was estimated to have a growth of more than 6 percent compared to the previous year.

Supply Analysis

  • The growth of capacity index started increasing since January 2018; available capacity in the air freight market grew by 6.2 percent in May compared to the same period the previous year.
  • Sanctions and trade disputes between the US and China had minimal impact on capacity as AFTK has been consistently growing by 1-3 percent on a monthly basis leading up to the peak season.
  • However, during the second half of the year, the shortage of available space in the market and demand growth outpacing the capacity growth was expected to increase through to the end of 2018 owing to the seasonal demand.
  • Challenges of capacity constraints were expected to continue due to weak order book as well as climatic disruptions in the EU and North America.

Demand Analysis

  • There was a dip in the air freight demand in the first quarter of 2018 which soon recovered into Q2 2018; volumes steadily increased majorly due to transpacific east-bound volume to the destination in North America.
  • FTKs increased to 4.2 percent in May, demand growth was on a slow pace majorly due to factors such as lower purchasing manager's index and global trade scenario. A modest FTK growth was expected through 2018, along with growth in the region of 2-4 percent overall.
  • In H1-2018, demand in air freight was driven by US-China trade volume ahead of trade sanctions, as well as China-Europe trade which surged as shippers in China rushed to deliver shipments to Europe to fulfill their volume commitment before European companies close for summer break.

Regional Market Analysis

  • All regions except for Africa have reported steady growth in terms of freight volumes, North America, LATAM carriers, and APAC carriers experienced growth in volume by more than 5 percent annually.
  • More than 5 percent of growth for North American and APAC carriers for the next half of the year would have a strong impact on freight in the peak season of the year.

Regional Demand Trend for Air Freight

  • Carriers of EMEA and North America reported stronger growth in freight volumes, which is at the rate of 3.8 percent while the EU recorded a growth of 3.3 percent.
  • African carriers saw a decrease in freight volumes by 8.5 percent in June compared to the same period last year.
  • The major volume of transpacific and Asia-EU shipments share has been driven by carriers of APAC, MEA, EU and followed by North America, which expects to set the tone for the upcoming peak season.

Global Air Freight Rates

  • Freight rates on major trade lanes reached their highest in July 2018, in spite of slow market growth. Freight rates from Hong Kong to Europe trade increased by 23.2 percent YoY. Frankfurt to North America lane also recorded an increase by 24 percent YoY.
  • Freight rates continued to grow at a steady phase. However, individual carrier's decision to deploy excess capacities to high demand lanes look effective to control increasing freight rates.

Air Freight Market Frequently Asked Questions

  1. What’s the global market size of the air cargo market?
  2. As per Beroe’s air freight market analysis report, the global market size of the industry is $54.5 Bn.

 

  1. List the high maturity and medium maturity regions for the air freight industry?
  2. According to the cargo industry analysis report, North America and Western Europe fall in the high maturity regions for the industry, while regions like India, China, Australia, New Zealand, Europe, Brazil, and others fall in the category of medium maturity regions.

 

  1. What are the leading air freight market trends worth noticing?
  2. Beroe shares a quick air cargo industry overview and recent trends which primarily includes the following pointers:
    -- It’s trickier to find data on costing, TCO models, supplier details, and performance benchmarks
    -- Regional trends majorly impact the cost, supply and other dynamics of the air freight market
    -- Air freight industry trends also include the negotiation and the sourcing part which is done based on specific categories

 

  1. Give a quick air freight and logistics industry overview from a global perspective.
  2. As per the air freight industry analysis report, there’s a gradual increase in the capacity index, while the available capacity in the air freight market grew by 6.2%. Also, trade disputes between the U.S. and China didn’t impact the capacity as AFTK has been consistently growing by 1 – 3% monthly. Another positive addition as per the air cargo industry statistics worth knowing is that regions like North America, LATAM carriers, and APAC carriers (except Africa) reported steady growth in terms of freight volumes by more than 5% annually. The EMEA showed a growth rate of 3.8%, while the EU recorded a growth of 3.3%.

 

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