Are Air Cargo Yields Where They Should Be?

Are shippers and forwarders willing to pull along?
This was a question posed to us some time ago with regards to whether shippers and forwarders were willing to pay more for the day to day carriage of air cargo.
The answer is probably – yes, now they are!
It was ironical however to see that in the past shippers were willing to pay more-or-less any price to pin down full charter capacity during peak times, but maybe not willing to enter a serious
dialogue with the carriers to pay a few cents more.
This it seems has changed and hopefully it will stay that way.
Yields for air cargo started to rise during the second half of 2017 and the IATA study shows that there were further increases in Q2 of this year. Good for the carriers.
Although the industry is doing well a dark cloud wanders over the horizon due to the uncertainty surrounding the world trade in the next years if sanctions and other factors take hold. More
important for the carriers is the development surrounding fuel prices. Much of the airline business costing is centred around this element and it is obvious that they are rising too fast.

John Mc Donagh