Market Updates (Jan 24th - Jan 31st)

Air cargo demand up 6.1% in Dec, 2024 demand beats 2021 record

The full-year global air cargo demand for 2024, measured in cargo tonne-kilometres (CTK), increased by 11.3 per cent (12.2 per cent for international operations) compared to 2023. Demand in 2024 exceeded the record volumes set in 2021.?

Regional performance?

Asia-Pacific airlines saw the strongest demand growth among the regions, 14.5 per cent YoY, in 2024. Capacity increased by 11.3 per cent.?

North American carriers saw 6.6 per cent YoY demand growth in 2024, the lowest of all regions. Capacity increased by 3.4 per cent year over year.?

European carriers saw 11.2 per cent YoY demand growth, and capacity increased by 7.8 per cent year-on-year.?

Middle Eastern carriers saw 13 per cent year-on-year demand growth, and capacity increased by 5.5 percent YoY.?

Latin American carriers saw 12.6 per cent YoY demand growth while capacity increased by 7.9 per cent year-on-year.?

African airlines saw 8.5 per cent year-on-year demand growth, and capacity increased by 13.6 per cent year-on-year.

Developing the future of Frankfurt Airport’s cargo hub: Space optimisation, space development, and digital and process innovation

Forecasts suggest that airfreight volumes at Frankfurt could exceed three million metric tons by 2040- a 50% increase over the 2021 peak. This anticipated growth, combined with challenges such as shifting goods flows, digitalisation, and sustainability, has driven Fraport, the airport's operator, to launch an ambitious Masterplan CargoHub aimed at securing the airport’s future as a global cargo leader.

At the heart of the master plan is a comprehensive investment package centred on three key initiatives: digitalisation and process innovation, space optimisation, and infrastructure development.

CSMIA international cargo up 17% in 2024 on pharma, auto push

Chhatrapati Shivaji Maharaj International Airport (CSMIA) capped off 2024 on a high note, with international cargo volumes increasing 17 per cent. According to an official release, CSMIA’s Mumbai cargo terminal achieved growth across international and domestic cargo categories.?

In March 2024, the cargo operations set a new milestone by handling a record-breaking 60,659 tonnes of international cargo, underscoring its strategic significance and operational excellence.

The release added that CSMIA now serves 687 international destinations, including new destinations such as Tripoli, Khabarovsk, Kaliningrad, Zhukovsky, Tyumen, Damascus, Honinabi, and Chisinau.?

International cargo volumes at CSMIA were split between 55 per cent of exports and 45 per cent of imports, with London, Frankfurt, Chicago, Dubai and Amsterdam emerging as the top global destinations.?

Pharmaceuticals, agro products, and automobile goods emerged as key drivers, recording year-on-year increases of 24 per cent, 22 per cent, and 20 per cent, respectively.

Maersk to stay off Red Sea; Drewry World Container Index drops 11%

The Drewry World Container Index (WCI) declined 11 per cent to $3,445 per 40ft container for the week of January 23, 2025.?

Freight rates from Shanghai to Rotterdam decreased 19 per cent to $3,434 per 40ft container, while those from Shanghai to Genoa fell 10 per cent to $4,562 per 40ft container. Rates from Shanghai to Los Angeles declined eight percent to $4,813 per 40ft container. Rates from Rotterdam to Shanghai, Los Angeles to Shanghai, New York to Rotterdam and Rotterdam to New York also declined.?

Drewry is expecting spot rates to decrease slightly in the coming week on the back of the Chinese Lunar New Year holidays.

Adani Vizhinjam Port Set To Become India's Largest Port

Kerala Finance Minister KN Balagopal said on Tuesday that the Vizhinjam International Seaport, operated by Adani Ports, is set to become India's largest port within the next decade.

Vizhinjam will redefine India's maritime sector with its natural deep-water capabilities, offering depths of 18 to 25 meters and proximity to international shipping lanes, enabling it to handle the world's largest vessels," Balagopal said.

Currently managing one million twenty-foot equivalent units (TEUs), the port's capacity is projected to increase to 6.2 million TEUs, positioning it to handle 15 per cent of India's container transshipment traffic. This expansion will challenge established ports like Colombo and Dubai, he added.

India likely to form consortium for global port operations: Report

India plans to set up a consortium for operating global ports with equity participation by public sector enterprises. Bharat Global Ltd will have Indian Port Rail & Ropeway Corporation, Sagarmala Development Company and Shipping Corporation of India (SCI) as stakeholders, the report said. Bharat Container Shipping Line will be launched as a vertical within SCI to vet global trade disruptions.The consortium will replicate the Chabahar port model in other strategic locations, the report said.

VietJet partners with ECS Group’s AVS GSA to Enhance BKK-BOM Cargo Operations

ECS Group has announced a new agreement between Thai VietJet and its subsidiary, AVS GSA Thailand on the Bangkok-Mumbai route.

This collaboration boosts Thai VietJet’s cargo capabilities, leveraging ECS Group’s network and expertise to support the airline’s growing presence in the international cargo market. The first shipment under this agreement was successfully transported on January 21, 2025, on the Bangkok (BKK) to Mumbai (BOM) route.

This partnership allows Thai VietJet to enhance its cargo offerings and optimize capacity utilization on its daily BKK-BOM-BKK flights. Using A320/321 passenger aircraft, the collaboration focuses on transporting general cargo, spare parts and e-commerce shipments. Key exports from Mumbai will include pharmaceuticals and garments, with transshipment opportunities via Bangkok to Thai VietJet’s broad route network.

Global Air Cargo Demand Achieves Record Growth in 2024 - IATA

The International Air Transport Association (IATA) released data for full year 2024 and December 2024 global air cargo market performance showing. Full-year demand for 2024, measured in cargo tonne-kilometers (CTK), increased 11.3% (12.2% for international operations) compared to 2023. Full-year 2024 demand exceeded the record volumes set in 2021.

Full-year capacity in 2024, measured in available cargo tonne-kilometers (ACTK), increased by 7.4% compared to 2023 (9.6% for international operations). Full-year yields averaged 1.6% lower than 2023 but 39% higher than in 2019.

DP World launches SARAL-3 service connecting Gujarat to NCR

End-to-end supply chain logistics company and one of leading private rail freight operators, DP World has launched its latest rail-led multimodal service, SARAL-3, connecting Gandhidham in Gujarat to the National Capital Region (NCR).?

As part of this newly launched weekly rail service, a dedicated container train will commence from Bhimasar, Gandhidham every weekend. It will reach Pali-Rewari, Haryana within three days and also provide an option to reach Panipat or Modinagar Inland Container Depot (ICD) within six days thereby, providing businesses assured transit time for their cargo at the start of the week.

This service is digitally enabled with advanced real-time tracking technology, which streamlines operations and provides complete visibility of cargo to the customers.

Spot vs contract gap widens as air shippers get wise to capacity limits

Ecommerce shippers reserving freighter capacity have widened the gap between global contract and spot rates, leaving transatlantic players more likely to find themselves stuck with the latter. If we look at how rates developed in 2024 worldwide, the spot rate was more volatile than contract rates, and towards the end of the year there was a higher spread. This had a huge impact on the amount of business done on spots, as rising prices made forwarders “more eager” to go for long-term contracts.?

There was, however, a huge difference in terms of behaviour seen between Asia-to-Europe and Europe-to-North America. The spread between spot and contact is very small on the lane Asia-to-Europe, which means people were quite well prepared for the big peak. There was so much panic in the markets that capacity was already planned. They realise there are only 550 or so freighters, and they want to lock-in demand, lock-in long-term.

Contract season in limbo as carriers eye conditions for a Red Sea return

The Asia-Europe shipping contract season appears stuck in limbo, with shippers having delayed proceedings as they wait to see if the Israel-Hamas deal holds and the Red Sea becomes safe to use. Pointing to the earlier-than-usual Chinese New Year this week, Scan Global Logistics’ global head of ocean freight, Daniel Cacciotti, said 2025 was panning out a little differently to previous years. Speaking on The Loadstar Podcast, he noted that the reason for delays to contract negotiations differed between verticals.

“Then you have other verticals that are already starting. Tech is starting earlier, and I think that this is becoming common practice; it is something we have been seeing now on the Asia-westbound trade.”

Short-term, Mr Damas expected spot rates to fall, “particularly when they have already started falling”, and that a resumption of Suez Canal transits would only further erode spot rates.

Airbus u-turns on its Beluga fleet goal

Airbus has suspended all flying by its new heavylift airline, Airbus Beluga Transport (AiBT), and will wind the unit down, returning the four A300-600ST Belugas it has to Airbus Transport International (ATI), according to Cargofacts.

the decision has been taken to terminate the Airbus Beluga Transport business for outsized cargo missions. All flights operated by the BelugaST fleet are suspended as of now. The closure project has just started and it is too early to predict a completion date.

Compliance fears as Indian Customs introduces revised manifest rules

Indian Customs has implemented a long-awaited rule revision to tighten export/import cargo manifests.The Sea Cargo Manifest and Transhipment Regulations (SCMTR) were announced in 2018, but industry has taken years to prepare and pave the way for a countrywide launch.

The authorised sea carrier/authorised sea agent shall submit an arrival manifest electronically, prior to departure from the last port of call to the Indian port of call. And submit a departure manifest electronically before departure from the Indian port of call.

More industrial unrest in Bangladesh, more opportunity for India

Chaos has gripped Bangladesh’s supply chains, with strikes on rail networks and transport operators threatening another walkout – creating further opportunities for Indian companies.

Railway staff walked out this morning, leading to suspended passenger and freight services, compounding existing congestion at both Chittagong and Dhaka’s rail inland container depots (ICDs).

All this labour unrest comes amid a difficult political period for Bangladesh, following the collapse of its government late last year, as buyers reportedly turn their attention towards alternative suppliers, leading to big wins for India.