Airlines have reported a renewed interest in block space agreements (BSAs) as forwarders prepare for a potential spike in airfreight rates later this year. While some in the industry remain cautious due to ongoing trade uncertainties, others are locking in rates now as a measure of security against price surges down the line.
Many airfreight forwarders have been hesitant to commit to long-term BSAs due to fluctuating demand linked to trade tariffs.
However, industry leaders at the Transport Logistic conference in Munich, noted a renewed appetite for BSAs, with Cargolux, who reported strong renewals. The experience during the COVID years and the ecommerce surge in 2024 have reinforced the value of guaranteed space.
However, not all carriers are rushing into long-term deals. Executives from Qatar Airways highlighted the risks of committing amid ongoing global global uncertainty.
BSAs carry a risk for all parties as both forwarders and airlines are betting on where the market will land at the end of the year.
Source: The Loadstar
We've not only re-signed our BSAs but have also made strategic moves to increase our commitment by doubling down on certain agreements. When space gets tight, consistency matters, and that is the kind of dependability Shipco brings to the table.
