On February 12, 2024, the third day of the AirCargo 2024 conference, more than 1,000 delegates gathered at the Omni Louisville Hotel to discuss the pressing issues and trends in the air cargo industry. The conference focused on topics such as regulatory changes, security, and technology, with leading experts like Brandon Fried, Executive Director of the Airforwarders Association, sharing their insights.
Growth in Air Cargo Demand and Red Sea Disruptions
The air cargo industry is experiencing a surge in demand, with the demand growing more than 10% year over year in January. This growth can be attributed to the increasing importance of air cargo as a less volatile alternative to traditional shipping routes, offering faster and more reliable service. However, the industry is also facing challenges due to the Red Sea disruptions that have caused a shift in shipping lanes, leading to a strain on air freight capacity.
Fried stated, "The disruptions in the Red Sea have led to an increase in demand for air cargo as shippers seek alternative routes. We need to work together as an industry to address the challenges this presents and find solutions to meet the growing demand."
Impact of Chinese New Year and Valentine's Day on Airfreight Movement
The Chinese New Year has also had an impact on air freight movement, with demand growing out of China as companies rush to get their products to market before the holiday. This has led to a strain on air cargo capacity and increased rates. Additionally, the upcoming Valentine's Day has led to a surge in flower trade volumes, with airlines taking measures to meet the high demand during peak seasons.
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