Air freight rates into the US are rising, with rates out of Shanghai up more than 14% in the past week, according to the TAC Index, while rates from Europe to the US are also on the up.
Rates from Shanghai to North America are at $13.62 per kg, according to the index, while out of Hong Kong they have risen 4.4%, to $12.09/kg.
Despite the rises, preliminary data shows volumes have remained steady, rather than the surge expected by the market, while load factors have declined very slightly.
Shanghai, which at the start of the month saw restrictions on traffic because of the International Expo, remains at relatively low amounts of capacity – roughly 40% less than it was in July, and less than one-third of the capacity out of Hong Kong. But forwarders and handlers are reporting a rise in demand for charters.
“Capacity is better after the Expo in Shanghai, as more charters are being approved from multiple origins. But it is still difficult to book for large consignments, especially volumetric cargo, and the booking window is still a few working days in advance,” said one Shanghai-based forwarder.
- Prices have generally increased from the past two weeks
- most air cargo executives say the market feels busy.
- forwarder had more inquiries than ever before.
- It’s an intense peak now
- expect that to continue
- manufacturing is facing a backlog in global logistics
He added that, in advance of Black Friday and the Thanksgiving holiday, e-commerce volumes were good.
“Large e-commerce giants all run their own scheduled charters, but there are still extra volumes. A top e-commerce company has asked for extra charters immediately to Europe, as its own charter could not accommodate all its volumes.”
But he said rates in the past two weeks had been stable.
“There have been many charters, both ad-hoc and scheduled, which helps to soften the market rate, so we have not seen a big increase in the recent couple of weeks.”
Rates from Europe to the US are also rising, with Heathrow to North America up 10% at $5.03, and from Frankfurt up a more muted 3.2% to $4.47.
One European-based forwarder said airlines were taking Asian volumes to North America via Europe.