Luxembourg freighter airline Cargolux has joined the Cargo.one, CargoAi and WebCargo by Freightos marketplaces. After an initial launch in Benelux and Germany, availability on the platforms will be gradually expanded to cover other countries and regions.
Air cargo industry should be proud as it avoids price ‘super peak’
Global air cargo demand showed no signs of slowing in November as volumes recorded a 13th consecutive month of double-digit growth and load factors hit their highest level since April 2022, according to the latest market analysis by Xeneta.
Demand rose +10% year-on-year in November, fuelled by the continued boom in e-commerce. This, coupled with only a +2% growth in air cargo capacity, contributed to global air cargo spot rates also reaching their highest level in nearly two years at US$2.90 per kilo, a sixth consecutive month of double-digit year-on-year growth.
The strong monthly performance in 2024 had led to hopes of a ‘peak of all peaks’ in Q4 from some sectors of the market. Niall van de Wouw, Xeneta’s chief airfreight officer, however, says the industry has done well to avoid it.
“The peak of all peaks should not be a goal. It should be avoided because of the imbalance it creates between winners and losers; 2024 had all the ingredients to see crazy peak season rates but the fact we haven’t is another sign of the maturity we previously referenced in the global air cargo market. What we witnessed in 2023 was a mess and a valuable lesson. In 2024, we are seeing those lessons put into practice,” he said.
He continued: “People should not be disappointed. We are witnessing a much more grown-up air cargo market based on better allocation of resources and better terms and conditions between all parties involved. The peak in 2023, in comparison, saw a shortage of capacity and rates going crazy, all at the expense of shippers.”
He added. “Why would we want to go back there again? The supply chain pressure of a peak of all peaks would have hurt consumers and put unnecessary restraints on relationships. It would have been opportunistic for short-term gains.”
Van de Wouw says the final months of the year have seen the air freight industry “take control of its own destiny.”
While some observers have indicated a muted end-of-year air cargo market, van de Wouw called for perspective. He said: “This is an air cargo industry that is currently firing on all cylinders, but which is not out of control. November’s data shows a market where volumes were +10% higher than an extremely busy corresponding peak month last year, and rates have risen, too.
“The closing months of 2024 could have been very messy again for shippers, but we are not hearing that. That’s not because the volumes are not there, or the flights are not full. It is because everything, overall, is being managed better. The industry should take a lot of credit for that.”
Spots remain above seasonal rates
This persistent supply-demand imbalance of 2024 pushed the dynamic load factor in November to 63% – its highest level in over 30 months. Dynamic load factor is Xeneta’s measurement of capacity utilisation based on volume and weight of cargo flown alongside available capacity.
This level of demand has strengthened the negotiating position of carriers and seen global air cargo spot rates remain above seasonal rates since late November 2023.
In terms of month-on-month trends, this year’s peak season, however, has been less intense than last year’s. Thanks to carriers’ proactive capacity management, the global air cargo spot rate increased only +12% between early September (the start of peak season) and the week ending 1 December, compared to a +25% surge during the same period last year.
This trend is particularly evident in the outbound Asia market. As carriers have shifted capacity to accommodate surging cargo demand, November spot rates from Northeast Asia experienced moderate growth. Its spot rates to Europe rose by +13% month-on-month to $5.09 per kg, while spot rates to North America increased +5% to $5.20 per kg.
Additionally, spot rates from Southeast Asia showed mixed results, with those to Europe remaining flat at $4.15 per kg and North America declining -3% to $6.05 per kg. The latter was driven by easing volumes, after spot rates exceeded last year’s peak season levels since late May 2024.
The Transatlantic market experienced more dramatic freight rate increases as cargo capacity moved elsewhere at the end of the summer passenger travel season. Europe to North America spot rates climbed by +46% from the previous month to $2.72 per kg, which is in contrast to the just +9% month-on-month growth during the same period a year ago.
Similarly, Europe to Latin America rates rose by +23% to $4.58 per kg. In Brazil, a five-day embargo in early November in Sao Paulo, South America’s largest cargo airport, coupled with ongoing nationwide digital customs delays caused by Brazilian Customs’ strike since 26 November, may push air cargo spot rates even higher in December. Shippers are likely to resort to air freight to avoid customs clearance delays.
Van de Wouw commented: “I think the air cargo industry should be proud it has avoided a ‘peak of all peaks’ because this is the basis for greater market stability. I hope this will enable everyone to head into their well-earned Christmas and New Year holidays with a sense of satisfaction.
“In 2024, the industry has shown its maturity. We must wait and see if this holds when the market goes down, but I don’t see that happening just yet.”
Dnata starts work on Dubai super-warehouse
Dnata Logistics has broken ground on a new, 57,000m² warehouse in Dubai South, near Dubai World Central – Al Maktoum International Airport. The AED 100 million (US$ 27 million) facility will be capable of processing 400,000 tonnes of cargo annually and will increase the forwarder’s storage capacity by 50% and create over 50 new, direct jobs with the company. It will also feature solar panels, rainwater and energy harvesting systems, as well as smart heating, ventilation and air conditioning. Construction is underway, with completion scheduled for November 2025.
TAP adds Los Angeles
TAP Air Portugal is to add flights from Lisbon to Los Angeles from May 16, 2025. The route will operate initially three times per week with Airbus A330-900neo aircraft but increasing to four times a week from May 25. The move brings TAP’s US destinations to eight, including New York, Chicago, Boston, Miami and Washington. It will also add four times a week flights from Portugal’s second city, Porto to Boston Logan International Airport from May 14.
Qatar signs Japan Airlines MoU
Qatar Airways Cargo has signed a memorandum of understanding with Japan Airlines to enhance their offerings to customers. It follows the launch of JAL daily passenger flights from Tokyo Haneda to Hamad International in Doha.
JAL senior vice president, head of cargo and mail, Yuichiro Kitof, said: “This agreement further strengthens the long-standing partnership between JAL and Qatar Airways Cargo. For the first time in 13 years, we have commenced the operation of our own freighters. Through this agreement, JALCARGO will leverage JAL’s passenger flights, freighter network, and the newly expanded Qatar Airways network to deliver customers’ cargo to an even broader range of destinations than ever before.”
In October, Qatar Airways Cargo signed a partnership with Malaysia’s MASKargo.
Swissport-Lufthansa team take Cargo iQ quality title
A joint Swissport and Lufthansa team won the Cargo iQ Quality-Rally (Q-rally) in Singapore on 4 December with their Implementation of their freight into warehouse (FIW) program.
The bi-annual Q rally is designed to push continuous improvement and encourage stakeholders in the global Cargo iQ quality improvement program to challenge each other and work together, share learnings, and make their efforts and results visible.
FIW’s goal was to level up the accuracy of service level agreement measurements, between the aircraft and drop off and the warehouse processes. Swissport applied continuous improvement throughout the project, initially by manually logging the movements of shipments. The partners then analysed the findings, improved the system requirements, measured again, and went back to fix the remaining discoveries.
The joint team presented and shared their learnings to the Q-rally including different business scenarios.
IAG Cargo appoints digital sales head
IAG Cargo has appointed Daniel Rodriguez to the new role of head of digital sales. He will accelerate the carrier’s online offering and better serve customers in the evolving logistics landscape. He has held various roles within IAG Cargo since 2018.
Musical duo for Chapman Freeborn
Broker Chapman Freeborn has launched a European music and entertainment division, placing all operations under two new heads of department. Internal promotions see Paul Kindred appointed head of music and entertainment business development, while Chloe Phelps becomes head of music and entertainment charters.
Kindred said: “Chapman Freeborn has been the leading charter broker in the music and entertainment industry for decades. The past 12 months have been very successful, and we are on track to achieving our corporate aim of becoming the partner of choice for the global music and entertainment industry.”
Chloe Phelps added: “We’re entering a busy year for the industry, and we’re confident that 2025 and the years ahead will bring tremendous growth and success. We’re eager to bring fresh ideas and a clear vision to this role and look forward to getting started.”
Air Canada brings confiscated creature to a better place
Air Canada Cargo has helped transport a white-nosed coati from Toronto Zoo to Omaha’s Henry Doorly Zoo & Aquarium after the animal was seized from a private home in Eastern Ontario.
The white-nosed coati is a member of the raccoon family normally found from Arizona to South America. The confiscated coati, named Mandy, received temporary care at the Toronto Zoo, while a more permanent solution could be found.
Director of environment management programs at Air Canada, Linda Kudzman, said: “There can be significant animal welfare and wellbeing concerns for exotic animals in private ownership or unaccredited facilities. As a global airline, we can help improve our planet’s fragile ecosystems by fighting against illegal wildlife trade, whether that involves taking measures to prevent illegally trafficked wildlife from entering Canada or facilitating their safe return home or to an accredited facility.”
ACS performs largest-ever rhino airlift
Air Charter Service has flown 39 white rhinoceroses from Windhoek, Namibia to Dallas in the largest ever relocation conservation project for the species, as well as the most rhinos ever to have flown on one aircraft.
The project aims to conserve the endangered population and preserve their unique genetics against poaching. The translocation required many months of careful planning, working in close collaboration with the conservation and relocation company and the airline.
The broker drew up an intricate load plan to fit all the oversize containers on board the Boeing B747. Once aboard, the team of veterinarians were able to personally look after the creatures for the duration of the flight. A fuel stop in Sal, Cape Verde, was necessary due to the rhinos combined weight of 80 tons, before landing at Dallas Fort Worth Airport.