Airfreight growth in 2024 is projected at 2-5%, according to the latest Asia Pacific freight update of Dimerco, noting that increased passenger widebody capacity in the region is impacting load factors and rates.

In the statement, it noted that e-commerce also remains resilient, driving air freight volumes despite an overall slowdown due to the Chinese New Year.

"Outbound rates from India to Europe and the US doubled in February due to the Red Sea crisis, but supply remains lower compared to other Asian countries," Dimerco said.

Meanwhile, anticipation of a slight increase in demand for outbound shipments from Asia as factories resume operations by late February or early March.

In terms of ocean freight, the global freight forwarder said post-Chinese New Year challenges result in an estimated capacity withdrawal of 35% for Europe/Med Westbound and 25% for Trans-Pacific Eastbound.

Dimerco noted that carriers strategically adjust rollover pools, maintaining stable freight rates despite sluggish cargo movements.

It also noted that ONE and WHL forged an independent partnership through a Vessel Sharing Agreement (VSA) for a new TP AP1 loop, separate from the Maersk-HL alliance and the upcoming Gemini Cooperation.

"Swift response to the Red Sea Crisis sees carriers deploying additional vessels, with 2M leading in average sailings and reducing overall rollover to less than 20%," the global freight forwarder, said.

"Despite challenges, rates for Northern Europe slightly decrease, showcasing the industry's adaptability," Dimerco added.