Expect Higher Transportation Rates in 2023

RESIDCO reports on transportation trends—both rail and aviation—in its Insights blog and e-newsletters. Looking at macroeconomic conditions affecting equipment and capital investment and providing forecasts and data from other relevant sources, adds to the value of this blog published in February. For example, it starts by noting that The International Air Travel Association expects the global aero industry to earn a $4.7 billion profit in 2023. U.S. and major European air carriers are better off than Asian (particularly China) carriers. 

“Coming out of the pandemic pent up air travel demand increased domestic load factors. Equipment and labor became operational challenges. As capital costs increased lease rates climbed,” it reported.

Also noted were challenges such as supply chain issues, pilot shortages and Russia’s invasion of Ukraine.

Despite current macroeconomic conditions, lessors and equipment producers are seeing higher lease rates and equipment demand, and RESIDCO reported optimism for 2023 opportunities. Read their complete article on higher transportation lease rates on their website.

This is a guest article courtesy of Glenn Davis, President and CEO, RESIDCO.