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INDUSTRY UPDATES

SEE-SAWING RATES

12/7/2021

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For rates to go down and maintain the level, they are expected to shoot up initially. The reason for such an anomaly is the space crunch that will come hand-in-hand when rates go down in the beginning. Because belly capacity is not expected to return until 2023, the current trend of skyrocketed rates may continue. Factors like ocean capacity being under pressure, bottlenecks at port terminal & trucking shortages will take time to unwind. Although the freight volumes have exceeded the pre-pandemic levels, it will be another year or 2 for airlines to fully recover the cargo capacity.

​Summary by Sonalika Nigam

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