Dhaka, April 7 -- Airfreight demand remains steady for now as shippers continue prioritizing service and market share despite rising costs, according to Xeneta. However, the outlook is uncertain, especially if fuel prices keep increasing.

Industry players are taking a cautious approach, waiting to see how the Middle East situation develops. While air cargo has typically benefited during crises, this conflict is putting more pressure on airlines than on ocean shipping, with freight rates already climbing.

Global air cargo demand fell 3 percent year-on-year in March, while capacity dropped 6 percent, pushing utilization levels higher. Spot rates have risen sharply, particularly on routes from South and Southeast Asia to the Middle East, d...