Excerpt from:  North America Supply Chain and Logistics Strategy
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November 28, 2007

Air cargo will have excess capacity over the next five years

Lufthansa Freight predicts an overcapacity of air cargo freight over the next 5 year.

Lufthansa Freight predicts that the capacity for air freight will be greater than the demand over the next 5 year. They believe that the capacity will grow by more than 6 percent a year compared to the demand which will only grow at 5.4 percent a year. 

With the Ocean rates remaining high will Air Cargo be a more preferred mode than Ocean Freight? With the growing capacity of air cargo, a company has more choices in providers and should be able to negotiate a favorable contract. 


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