SKY BHEX

Let us look at the short-term and long-term implications of the turmoil in Bangladesh air cargo market. Shippers are facing hefty #demand surcharges and shrinking margins. These increases are driven purely by a supply/demand imbalance, demonstrated in the fact the air cargo load factor from Bangladesh to Europe hit 97% in the week ending 25 August. This will likely prompt some shippers with urgent cargo to re-route from Dhaka and truck it to alternative air freight hubs, such as Delhi and Kolkata in India – such events were previously observed during the height of the Red Sea crisis. There is currently also a financial incentive for shippers to re-route supply chains away from Bangladesh. In the week ending 25 August, the air cargo spot rates from India to Europe and North America were USD 3.14 per kg and USD 4.78 per kg respectively, which is about 30% lower compared to corridors out of Bangladesh. If we look at the long-term repercussions, Bangladesh will emerge from the civil unrest and flood waters will subside, but there may be a longer term impact if the turmoil of 2024 spooks shippers into shifting #supplychains to other regions. Currently, several global fashion brands are reportedly canceling orders from Bangladesh and shifting them to other #garment #exportmarkets such as Cambodia and Indonesia in Southeast Asia. This shift between Bangladesh and Southeast Asia underscores the interconnectivity of global air cargo markets. It is no longer enough to monitor individual corridors – shippers must think at a #global, #regional and #tradelevel. The uncertain geo-political landscape demands shippers to be able to react quickly to disruptions in their supply chain. Info Source - Xeneta Wenwen Zhang To know about our customised air freighter rates, visit us at https://lnkd.in/dNCfJtE9 or contact Anto Bright #cargocapacity #loadingcapacity #import #export #newfreighter #cargomovement #freighforwarders #cargocapacity #freighter #aerospacelogistics #aircargoindustry #cargotrends #aircragoservices #freighters #freightforwarders #logistics #aerospacelogistics #demandandsupply #globalaircargoindustry

Bangladesh, world’s second-largest #garmentexporter had to face the the wrath of civil unrest within its borders in early June along with knock-on impacts of conflict in the Red Sea throughout 2024 causing factory shut-downs and cargo stockpiles at sea and #airfreight terminals. Almost the entire air cargo industry is impacted by the #geopolitics and climate-related events have caused #turbulence across the world’s #aircargo #supplychains in 2024 – but few regions have been impacted as severely as Bangladesh. More recently in August, major #flooding halted rail and road transportation on the critical route between Chittagong and Dhaka. So the implications of these disruptions are serious particularly for importers in Europe and US. Bangladesh’s #aircargo market is very short-term oriented because about 70% of the capacity procured by #freightforwarders comes at a price which is valid for no more than a month. This series of adverse events led to outbound Bangladesh #aircargo #spotrates accelerating at one of the highest paces on record (+163% year-on-year) in the week ending 25 August, reaching their highest level in over two-and-a-half years. Bangladesh also holds the record for the highest air freight rate increase so far in 2024 across all global air corridors. More specifically, the #aircargo spot rate from Bangladesh to Europe, one of Bangladesh’s major corridors, exceeded its previous Red Sea peak in May by reaching USD 4.95 per kg in the week ending 18 August. The market did ease slightly in the week following the August peak, falling to USD 4.77 per kg. For context, the all-time record freight rate on this corridor was observed during the pandemic when it reached USD 5.71 per kg in mid-November 2021. The spot rate from Bangladesh to North America in the week ending 25 August reached its highest level in over two years, rising to USD 6.91 per kg. This is an increase of 127% compared to the same week in 2023. The scale of these increases is made all the more remarkable considering the market was in decline in the first half of 2023 when high #inventorylevels and weak demand from European and US consumers saw #aircargo rates fall back below pre-pandemic levels. This market stress is echoed in the ocean container market. For instance, the average spot rate to ship a 40ft dry container from Chittagong to North Europe stood at more than USD 6 300 in late August, which is +270% higher than 12 months ago. Info Source - Xeneta Wenwen Zhang To know about our customised air freighter rates, visit us at https://lnkd.in/dNCfJtE9 or contact Anto Bright #cargocapacity #loadingcapacity #import #export #newfreighter #cargomovement #freighforwarders #cargocapacity #freighter #aerospacelogistics #aircargoindustry #cargotrends #aircragoservices #freighters #freightforwarders #logistics #aerospacelogistics #demandandsupply #globalaircargoindustry

Global #aircargo markets continue to show strong annual growth in #demand as per the latest data released from International Air Transport Association (IATA). The #totaldemand measured in cargo tonne-kilometers (CTKs*), rose by 13.6% compared to July 2023 levels (14.3% for international operations). This is the eighth consecutive month of double-digit year-on-year growth, with overall levels reaching heights not seen since the record peaks of 2021. Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 8.3% compared to July 2023 (10.1% for international operations). This was largely related to the growth in international belly capacity, which rose 12.8% on the strength of passenger markets and balancing the 6.9% growth of international freighter capacity. It should be noted that the increase in belly capacity is the lowest in 40 months whereas the growth in freighter capacity is the highest since an exceptional jump was recorded in January 2024. The air cargo business continues to benefit from growth in #globaltrade, booming #ecommerce and #capacity constraints on maritime shipping. With the #peakseason still to come, it is shaping to be a very strong year for air cargo. And airlines have proven adept at navigating political and economic uncertainties to flexibly meet emerging demand trends. Info Source - International Air Transport Association (IATA) To know about our customised air freighter rates, visit us at https://lnkd.in/dNCfJtE9 or contact Anto Bright #cargocapacity #loadingcapacity #import #export #newfreighter #cargomovement #freighforwarders #cargocapacity #freighter #aerospacelogistics #aircargoindustry #cargotrends #aircragoservices #freighters #freightforwarders #logistics #aerospacelogistics #demandandsupply #globalaircargoindustry #airfreight #markets #economy #transportation #supplychain #cargotrends #supplychainwoes #aircargotrends #cargo #cargotrends

Global #airfreight rates were a little stronger again last week according to the latest data from TAC Index. The overall Baltic Air Freight Index (BAI00) calculated by TAC was up +3.3% in the week to 26 August, leaving it ahead by +16.6% over 12 months. The latest numbers confirm that the firm tone of the market over the summer when prices usually dip ahead of peak season has continued. Sources are divided about whether peak season arrived early or whether there is a further surge to come due to limited capacity. Rates remain firm on the big lanes out of China, with the index of outbound routes from Hong Kong (BAI30) up another +1.9% WoW to leave it ahead by +23.3% YoY. Outbound Shanghai (BAI80) rose +4.3% WoW led by higher rates to Europe, pushing its YoY gain to +33.3%. Rates from elsewhere in Asia were more mixed, with rates from India higher again to Europe but lower to the US; while rates from Vietnam were higher to the US but lower to Europe. There were big gains on rates out of Europe, with the index of outbound routes from Frankfurt (BAI20) rising +6.7% WoW with gains on all major lanes helping cut the YoY decline to -9.3%. Outbound London (BAI40) saw an even bigger gain of +8.8% WoW led by a sharp rise on lanes to North America which helped trim the YoY fall to only -6.1%. Out of North America the index of outbound routes from Chicago (BAI50) bucked the rising trend with a drop of -4.9% WoW leaving a YoY decline of -4.6%. Overall rates from the US were rising both to South America and to China, though falling back a little to Europe. Info Source -TAC Index To know about our customised air freighter rates, visit us at https://lnkd.in/dNCfJtE9 or contact Anto Bright #cargocapacity #loadingcapacity #import #export #newfreighter #cargomovement #freighforwarders #cargocapacity #freighter #aerospacelogistics #aircargoindustry #cargotrends #aircragoservices #freighters #freightforwarders #logistics #aerospacelogistics #demandandsupply #globalaircargoindustry #airfreight #markets #economy #transportation #supplychain #cargotrends #supplychainwoes #aircargotrends #cargo #cargotrends

Xeneta has forecasted a positive outlook for #aircargomarket in second half of 2024, this is based on the positive air cargo demand in the first seven months of 2024 with a flat 12% increase as compared to 2023. #Xeneta feels that this came as a surprise compared to October 2023 when forecasts suggested growth of between 1-2%, with inventory destocking, high #inflation and elevated interest rates dampening consumer demand and #globaltrade. The demand surge in the first seven months of 2024 was a result of fast-rising cross-border #ecommerce demand from Asia, disruptions in #oceanshipping, disruptions due to the Red Sea crisis, a broader general cargo demand increase driven by high-tech #semiconductors for high-performance computing and the #AI boom, and a low comparison base from last year. If the strong #demand seen in the first seven months of 2024 continues, air cargo demand for the full year is on track for double-digit growth. In the first seven months of 2024, global air cargo supply increased only 4% especially from the outbound Northeast Asia market. However, growth momentum slowed from seven percent year-on-year in January to just 2% in July. With widebody aircraft deliveries slowing due to #supplychain issues and #conversioncapacity constraints, growth momentum will likely be muted for the rest of 2024, aligning with the two-four percent supply growth expected for the full year 2024. Info Source - Xeneta To know about our customised air freighter rates, visit us at https://lnkd.in/dNCfJtE9 or contact Anto Bright #cargocapacity #loadingcapacity #import #export #newfreighter #cargomovement #freighforwarders #cargocapacity #freighter #aerospacelogistics #aircargoindustry #cargotrends #aircragoservices #freighters #freightforwarders #logistics #aerospacelogistics #demandandsupply #globalaircargoindustry #airfreight #markets #economy #transportation #supplychain #cargotrends #supplychainwoes #aircargotrends #cargo #cargotrends

Flight cancellations caused by a typhoon in Northeast Asia and national holidays in several European countries have led to a significant mid-August fall in air cargo tonnages, according to the latest figures and analysis from WorldACD Market Data. Air cargo tonnages in week 33 (12 to 18 August) dipped sharply, by -7% compared with the previous week, dropping especially steeply from Asia Pacific (-9%) and Europe (-11%) origins. Further analysis, reveals that most of the decline ex-Asia Pacific (almost 70%, or -6% points out of the -9%) can be explained by a drop in tonnages ex-Japan (-47%) due to a typhoon that led to flight cancellations to and from the island nation. Flights to and from South Korea were also affected, but to a much lesser extent. Similarly, most of the -11% decline ex-Europe (around 80%, or -9% points out of the -11%) can be explained by a fall in tonnages flown from countries where a 15 August holiday (‘The Assumption’) was widely celebrated (significantly in France, Italy and Spain, but also parts of Germany and Belgium). If we adjust for those effects (assuming the reductions can be fully attributed to those causes), the remaining global reduction in tonnages would be limited to -2%, week on week (WoW), instead of -7% – consistent with an underlying global slight weakening trend this month, compared with July’s relatively strong performance. Compared with the equivalent period last year, tonnages flown were still up globally by +9%, including year-on-year (YoY) rises from both Asia Pacific (+10%) and Europe (+8%) origins. Info Source - WorldACD Market Data To know about our customised air freighter rates, visit us at https://lnkd.in/dNCfJtE9 or contact Anto Bright #cargocapacity #loadingcapacity #import #export #newfreighter #cargomovement #freighforwarders #cargocapacity #freighter #aerospacelogistics #aircargoindustry #cargotrends #aircragoservices #freighters #freightforwarders #logistics #aerospacelogistics #demandandsupply #globalaircargoindustry #airfreight #markets #economy #transportation #supplychain #cargotrends #supplychainwoes #aircargotrends #cargo #cargotrends

Cathay Cargo is planning to expand its operations in India. Tom Owen, expressed his wish for its #freighterplanes to be allowed to "co-terminate" while flying between multiple #destinations within India under the #opensky framework. India’s open-sky policy allows foreign #cargocarriers to operate from all international airports in the country to speed up the exports of #perishableitems and other #cargoneeds. So, what did Owen meant by "co-terminate" while flying between multiple destinations? -       Cathay Cargo would like to fly into Delhi and then fly to Kolkata and then fly back to Hong Kong -       This will allow the cargo carrier to pick up cargo from two or three places instead of just one. Owen also expressed his keen interest in India’s #economicgrowth and hoped that Cathay Cargo can be a part of this growth. Cathay Cargo is #optimistic about India’s increasing #exports of #pharmaceuticals, #automobile components, #electronics and #farm products. What does Cathay Cargo plans in long-term with respect to India’s air cargo market? -       The carrier plans to redeploy the capacity to help the country respond to the needs of the market -       India is very fertile and a very productive country and has big opportunity in fresh #vegetables, fresh #flowers moving out of India to other parts of the world -       Cathay Cargo is also in talks with IndiGo (InterGlobe Aviation Ltd) and other passenger carriers to use the aircraft's #bellyspace for carrying cargo. -       There's lot of heavy #shipments of cargo coming in and out of India to support the Indian economy and Indian companies Cathay Cargo is eyeing India’s "miraculous" growth in the economy over the past 10 years, rapid #infrastructure development and the skill of the entire workforce involved in #logistics business. Owen also explained how India is solving its #supplychain issues with #nationalhighway development, trucking capabilities increasing with better #airports and investment ultimately leading to easing of supply chain bottlenecks. Owen concluded by saying that the above reasons have given us confidence that moving air cargo will continue to be a great business for us in short and long term in India. Info Source - Press Trust of India (PTI) To know about our customised air freighter rates, visit us at https://lnkd.in/dNCfJtE9 or contact Anto Bright #cargocapacity #loadingcapacity #import #export #newfreighter #cargomovement #freighforwarders #cargocapacity #freighter #aerospacelogistics #aircargoindustry #cargotrends #aircragoservices #freighters #freightforwarders #logistics #aerospacelogistics #demandandsupply #globalaircargoindustry #airfreight #markets #economy #transportation #supplychain #cargotrends #supplychainwoes #aircargotrends #cargo #cargotrends

There is a growing demand for #airfreight in India as the country remains the main attraction for major carriers. Ongoing plans to establish transport shipment hubs at major airports are expected to drive the India cargo growth story further. Currently many airports like #Pune, Navi Mumbai International Airport , Noida International Airport are in the process of building a huge #cargohub for seamless #aircargo movement. Virgin Atlantic Cargo is planning an increase about 40% in its belly freight capacity out of India next year. According to #VirginAtlantic, there is an opportunity in the greater air freight demand for the movement of perishables, pharmaceuticals and textiles/garments to the UK and US. Thus we can see how India is becoming centre-stage of cargo growth for airlines, including Virgin Atlantic, Turkish Cargo and Cathay Cargo Dedicated freighter operators and #airlines, both domestic and foreign, have been building their Indian #cargooperations to capitalise on expected trade expansion, propelled by the regional trade diversification. With these advancements it looks like the Government of India Official aim of rising India's #aircargomarket from 3.5 million in 2018 to 10 million metric tonnes by 2030 will be a reality soon. Info Source - Inputs from The Loadstar To know about our customised air freighter rates, visit us at https://lnkd.in/dNCfJtE9 or contact Anto Bright #cargocapacity #loadingcapacity #import #export #newfreighter #cargomovement #freighforwarders #cargocapacity #freighter #aerospacelogistics #aircargoindustry #cargotrends #aircragoservices #freighters #freightforwarders #logistics #aerospacelogistics #demandandsupply #globalaircargoindustry #airfreight #markets #economy #transportation #supplychain #cargotrends #supplychainwoes #aircargotrends #cargo #cargotrends

Global #airfreight rates were little changed last week according to the latest data from TAC Index. The overall Baltic Air Freight Index (BAI00) calculated by #TAC was off a tad but by only -0.1% in the week to 19 August – maintaining the solid pattern of recent weeks and taking the year-on-year gain to +10.8%. Sources said the market is generally holding steady, despite it being the summer season when rates usually ease due to extra passenger bellyhold capacity. While there was a lot of movement up and down on individual lanes, there was little change overall from the big hubs out of Asia. The index of outbound routes from Hong Kong (BAI30) gained a further +0.6% WoW, taking its gain YoY to +22.9%. Outbound Shanghai slipped -1.2% WoW, leaving its rise YoY at a robust +28.1%. There were further gains on rates from Seoul to Europe, newly added to the data the previous week. Rates fell back out a little out of India after the huge gains earlier this year, while rates from Vietnam were falling to Europe though rising again to the US. Rates out of Europe eased back a little after recent gains amid some reports of marginal capacity being shifted to busier lanes out of Asia. The index of outbound routes from Frankfurt (BAI20) fell -2.4% WoW, with rates to North America as well as to China both slipping a little, leaving the decline YoY at -18.4%. Outbound London (BAI40) eased by -0.8% WoW, leaving the YoY fall on that index at -18.8%. From the Americas, the index of outbound routes from Chicago (BAI50) gained a further +2.7% WoW, led again by higher rates to South East Asia, reducing the YoY decline to -14.7%. Overall rates from the US were rising to Europe but falling both to China and to South America, particularly on the lanes out of Miami following some strong recent gains. Info Source - TAC Index To know about our customised air freighter rates, visit us at https://lnkd.in/dNCfJtE9 or contact Anto Bright #cargocapacity #loadingcapacity #import #export #newfreighter #cargomovement #freighforwarders #cargocapacity #freighter #aerospacelogistics #aircargoindustry #cargotrends #aircragoservices #freighters #freightforwarders #logistics #aerospacelogistics #demandandsupply #globalaircargoindustry #airfreight #markets #economy #transportation #supplychain #cargotrends #supplychainwoes #aircargotrends #cargo #cargotrends

The global #privatejet #charterflights reportedly experienced a decline of 15% in the first half of this year compared to their peak in 2022. This is partially attributed to a waning surge on #demand caused by #pandemic and emergence of a new competitive landscape for high-end travel. The number of #privatejet charter flights dropped to 610,000 in the first half of this year, down from 645,000 during the same period last year and 716,000 in 2022. The #decline in #demand reflects an ongoing #correction in the private aviation sector. During the #pandemic’s peak, there was a surge in new jet card members and charter fliers who opted for #privatetravel for the first time. However, many of these travelers, even ultra-wealthy ones, have now returned to #commercial flights. When #airports and #airlines shut down in 2020, private jets provided an escape and a safer way to #travel. Wealthy travelers who had previously been reluctant to fly private due to #cost and #environmental concerns found a reason to do so. At the same time, government spending, stimulus packages, low interest rates and a booming stock market created wealth that could be used to cover the costs of private travel. However, #demand started to slip in 2023 as some travelers no longer felt they could use #COVID as an excuse to fly privately. The soaring prices of private flights also became a deterrent for many individuals. Prices are now about 20% higher than they were in 2019. As a result, some fliers have opted to mix #commercial and #private flights or switch between #airlines and private jets depending on their #travelneeds. Info Source - ARGUS International, Inc. and CNBC DO check out our attractive rates on #privatecharters, to know more log on to - https://lnkd.in/gAuVPyph #airtravel #leisuretravel #businesstravel #privatecharter #personaljet #customisedplane #charterflights #convinienceoftravel #easeoftravel #safety #security #luxurytravel #businesstravel #safetravel #convinience #businessplans #businessmeetings #conference #privatejets #businessjets #safetravel #safety #rulesandregulations #privateoperators #luxury #privacy #oppulence #lifestyle