Air Cargo rates to remain flat through most of 2013

According to Charles W. “Chuck” Clowdis, managing director, Transportation Advisory Services for IHS Global Insight, this slow growth still reflects rates that have remained stable for most of the past year.

By ·

While Air cargo volumes have crept along at a snail’s pace during most of 2012. The year is apparently going to end without a push for last minute electronics and other higher value retail goods to fill the space on cargo planes to capacity.

According to Charles W. “Chuck” Clowdis, managing director, Transportation Advisory Services for IHS Global Insight, this slow growth still reflects rates that have remained stable for most of the past year.

“Even the strike at the posts of Los Angeles/Long Beach did not last long enough to push goods from sea to air as inventory carrying stocks may have become threatened,” he said in an interview.  “It is our feeling that rates will continue to remain at present levels during 2013’s First Quarter and likely remain so unless there is a discernible economic recovery that will include robust consumer spending.”

Some hope for a recovery exists by next summer, however. Clowdis said mid-year spending may see a bit of an upturn for air freight items if new electronic items are released.

“Likewise consumer spending on relatively high value goods could return with a rise in the economy,” he said. “But this scenario is unlikely looking forward six months or so. Six months into 2013 will find us most likely awaiting a change in the economic situation hopefully coupled with a drop in unemployment.”

Clowdis said that “Back to school” will not have a large impact on air cargo rates in the third quarter of 2013.

“But we feel the industry may eek-out a small, less than 1.5% increase,” he said. “The economy is coming to grips hopefully with the impact of any tax changes or health care costs that will be impacting by September 2013.”


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

Air Cargo · Air Freight · Trade · All Topics
Latest Whitepaper
eBook: Why Multi-Tier Supplier Collaboration is More Important Now
Explore the benefits of supplier collaboration including sharing demand forecasts, faster reactions to demand or capacity changes and well-coordinated product launches.
Download Today!
From the September 2017 Logistics Management Magazine Issue
While Amazon’s recent bid to purchase Whole Foods made mainstream headlines, the e-commerce giant will still need to adhere to time-tested realities. Any way you slice it, the integrated U.S. cold chain requires optimized service from existing ports, 3PLs, cold storage warehousing, transportation providers and high-value vendors.
Improving 3PL Management: Glanbia Adds Muscle to Logistics
Why Retail Supply Chain Transformations Fail - and how to get it right
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
EDITORS' PICKS
26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...

2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...