During the second quarter of 2023, the global air cargo industry experienced a substantial decline in average spot rates, reaching a record low of $2.25 per kg by June, marking a staggering 40% year-on-year drop. These findings were highlighted in the inaugural Xeneta Air Deep Dive Report (XADD), which looks into how supply, demand and macroeconomic factors are significantly impacting rates this year. Compared to the first quarter, the rate further decreased by 11%, a trend partly attributed to the seasonal nature of the market. Additionally, the decline in jet fuel prices also played a role in shaping this downturn.However, the report identified a third major contributing factor to the plummeting rates: the demand-and-supply dynamics within the industry.
