Global air cargo volumes rose by 4% in October compared to the same month last year, according to the latest analysis by Xeneta. The increase came despite slower demand between Europe and North America, which fell by 6%. Analysts warned that the decline on this important route could be a sign of tougher times ahead for the global trade market, which directly affects India’s export and import flows as well.

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Global air cargo volumes rose by a better-than-expected 4% in October compared to the same month last year, according to Xeneta. The growth came even as businesses slowed down early imports due to higher tariff costs and the impact of the US de minimis ban.

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Global air cargo demand growth slowed to +3% year-on-year, in line with capacity growth, in September, at what would traditionally be seen as the commencement of the peak season.

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More downward pressure may lie ahead on rates, according to Niall van de Wouw, Chief Airfreight Officer, Xeneta.

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The prospect of a large scale return of container ships to the Red Sea following the announcement of a ceasefire between the U.S. and Houthi militia in Yemen would flood the market with shipping capacity and cause a global collapse in freight rates – but the situation remains far from certain.

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