Air freight rates still rising: ‘the last thing shippers want in this market’

Transpacific air freight rates are surging again, with prices up more than 8% in the past week.

China to the US saw rates rise 8.6% to $5.16, while Hong Kong to the US jumped 9% to $5.35, according to the latest TAC Index figures.

Forwarders have reported, however, that the rates tend to be even higher than the index records.

Freight Investor Services (FIS) said rising rates were encouraging carriers to continue to trade in the spot market, rather than opt for longer-term contracts.

“A boost in ex-Asia Pacific prices, perhaps the last thing shippers will want in this market, lifts the curve upwards,” it said.

“We would see that this could create a bit of persistence on the carrier side of the market in holding onto spot pricing, creating a bit of instability in forecasting considering the lack of more than month-long fixed-price contracts.”

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Source: The Load Star

Air Freight Rate Increases Slow – and Even Reverse – as More Capacity Arrives

May 12, 2020

Air freight rates are finally stabilising, after weeks of rising at unprecedented levels.

Charter brokers and air freight rate indices are seeing increases slow – or even reverse – as more capacity comes into the market.

Freight Investor Services (FIS), using data from the TAC Index, revealed a 47-cent decline in Shanghai to Europe prices, Hong Kong to Europe has fallen by 18 cents, while China to Europe, overall, has fallen 32 cents.

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Source: The Load Star

Air Cargo Capacity Increase Produces Swift Knock-On Effect on Rates

May 11, 2020

The increase in global air cargo capacity – maindeck and belly – in the past few weeks, mainly to accommodate booming demand for shipments of personal protective equipment (PPE) to combat the coronavirus, has produced a swift knock-on effect on freight rates, according to German market intelligence specialist Tim Consult.

“On many, many routes, the gap between the contracted rate levels in the pre-COVID-19 period and the current situation is not that big anymore,” said Christoph Bruns, head of global air cargo, at a recent webcast on the latest air cargo trends organised by the German company.

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Source: Lloyd’s Loading List

Ex-China Air Freight Capacity Now Higher Than Last Year

May 4, 2020

Overall outbound air cargo capacity from China was up 6% last week on 2019 levels although air freight capacity from China remains highly constrained, as demand for shipments of Personal Protective Equipment (PPE) continues to boom, according to the latest COVID-19 operational update yesterday from freight forwarding and logistics group Agility.

The forwarder noted that all mainland China export markets were “under tremendous pressure” as production resumes and passenger flight cancellations are sustained, despite the fact that total overall outbound air cargo capacity from China – maindeck plus belly cargo capacity, to all regions – has apparently risen to pre-crisis levels, mainly through massive increases in freighter capacity deployed to serve the huge demand for capacity ex-China, and the corresponding very high freight rates.

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Source: Lloyd’s Loading List

Postal Services Are Struggling and Need More Air Capacity Now, Says IATA

May 4, 2020

Governments must ease restrictions on airlines as the lack of cargo capacity continues to dog various sectors.

Following last week’s concerns about services to and from Africa, IATA warns today that now postal services are struggling.

The 95% axing of passenger flights, which tend to carry mail, has led to challenges for the industry that have been exacerbated by a 25%-30% rise in e-commerce demand.

IATA and the Universal Postal Union have urged governments to remove restrictions which have led to blockages, as well as to fast-track the issue of permits for charter operations.

For the full story, please click HERE

Source: The Load Star