The slowdown in the decline in air cargo volume in May resulted in a 41% year-on-year decrease in spot freight rates for regular air cargo last month.

Last month, the global average spot air freight price was $2.31 per kilogram. The spot price from Northeast Asia to the United States increased by 3% month on month and 49% year-on-year, to $4.19 per kilogram; And spot prices from Europe to the United States fell 14% month on month and 45% year-on-year, to $1.92 per kilogram.

Airlines and freight forwarders have become nervous because of lower rates, not a decrease in freight volume. It is the fear of missing out that has driven a significant drop in freight prices, as no one wants to reduce freight volume and they also want to obtain more goods in the market. We can see that freight forwarders are taking huge risks, "said Niall van de Wouw, Chief Air Transport Officer of Xenetta.

The biggest issue for operators now is whether they are pursuing profit or sales? No one wants to fly empty because if they keep prices high, they won't be able to generate enough sales, "shared van de Wouw.

For the freight department of airlines, this will be a long summer, and it seems that the market will take several quarters to get rid of the current unreasonable pricing environment, "he added.