Air Cargo: Rates Remain Steady

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

By ·

While Air cargo volumes have crept along at a snail’s pace during most of 2012. The year ended 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 dockside strikes at seaports last year did not last long enough to push goods from sea to air as inventory carrying stocks may have become threatened,” he says. “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 predicts that 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 says. “But this scenario is unlikely looking forward. Six months into 2013 will find us most likely awaiting a change in the economic situation hopefully coupled with a drop in unemployment.”


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

All Topics
Latest Whitepaper
Private Fleet vs. Dedicated: Which one is right for you?
Having the right fleet for your business can give you an advantage over the competition and lower transportation costs.
Download Today!
From the April 2017 Issue
While adoption rates have remained relatively flat, yard management systems (YMS) are helping logistics operations turn that important space between the loading dock and the gate into a vital link in the supply chain.
Information Management: Wearables come in for a refit
2017 Air Cargo Roundtable: Positive Outlook Driven by New Demand
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Maximize Your LTL Driver Adherence with Real-time Feedback
This webinar shows how companies are using real-time performance data to optimize the scheduling of their city fleets, as well as the routing of their standard, accelerated and time-critical shipments.
Register Today!
EDITORS' PICKS
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...

ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...