Air cargo demand has continued to plummet, falling for 11 consecutive months. Experts from the International Air Transport Association (IATA) are projecting a 5.6% drop in air shipment demand for this year, following an 8% decline in 2022. Other market reporting groups indicate that demand has fallen even further, with January’s figures showing a year-over-year drop of 10% to 20%.
Meanwhile, air cargo capacity has increased by over 12% as passenger airlines begin to resume more services following the pandemic. To make matters worse, global air cargo rates are down by a staggering 37% from last year’s levels, according to the TAC Index. These numbers paint a bleak picture for the air cargo industry in the coming year.
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