Global air cargo spot rates jumped by 41% in May due to rising tensions.

In May, global air cargo spot rates surged by 41% year-on-year to an average of $3.40 per kg due to strong demand, limited capacity, and geopolitical issues, according to Xeneta. While demand rose by 4% and capacity slightly improved, pressure on pricing for shippers may ease as capacity increases and demand stabilizes. However, frontloading trends in ocean freight could impact air freight demand. Despite elevated rates, signs of market softening are emerging, particularly in specific trade corridors, with a potential decline in rates expected as additional capacity returns in the summer.