News / Airfreight rates ex-Asia 'surprisingly strong' through traditionally low period

© Paisal Sangiamsri

Airfreight rates out of Asia continue to harden – despite a brief fall around US Independence Day on 4 July.

The first week of July saw worldwide tonnage up 11% year on year, according to data released by WorldACD today. Average worldwide rates of both spot and contract, were $2.57 per kg in week 27, up 2% from the previous week – some 68% higher than the same period of last year.

The figure is higher from Asia. About half of Asia Pacific tonnage to the US originates from China and Hong Kong, which saw average spot rates of $5.34 per kg and $4.84 per kg, respectively.

WorldACD, however, noted that other origins in Asia Pacific were seeing steeper prices: rates out of Vietnam in Week 27 were $6.62 per kg – 147% up on last year; from Thailand, they were $6.46 per kg; and from Singapore, $7.02 per kg.

The rates will be a boost for Maersk Air Cargo, which said today its first 777F would arrive in Billund on Saturday after completing test flights. It will ply China-Europe three times a week at first, and up to six times a week, as will its next 777 delivery, scheduled for Q3.

One forwarding source told The Loadstar that “air freight from southeast Asian hotspots might climb to $10 a kilo in August”.

“I think if I was a European retailer, I would now be worried about the ‘ back to school market”, they added, citing delays.

Meanwhile, The Loadstar was today quoted a door-to-door service from Guangzhou to Nigeria at a heady $9.80 per kg up to 99kgs, and $8.50 per kg beyond that.

Overall in June, South-east Asia to Europe and the US saw the largest spot rate increases, according to Xeneta, up 14% on the month before, at $3.65 and $5.32 per kg, respectively. North-east Asia also saw rises: to Europe rates rose 5%, to $4.26; and to the US, rates were up 4%, to $4 per kg.

“The  market has remained surprisingly strong through what is normally a low season in the year, as extra bellyhold capacity comes on stream for the summer, reflecting continuing robust ecommerce activity,” Metro Shipping told customers.

“Rates are also significantly higher year on year out of some other big markets in Asia, notably India and Vietnam, and particularly on lanes to Europe. Generally we are seeing huge demand on most inbound lanes into Europe on air freight, with congestion at global hubs still prevalent.

“Unlike the ocean freight theory that the market is busy due to restocking (and of course the Red Sea/Suez Canal effective closure), this idea does not make sense for air freight and time-critical cargo. It’s simply a case of higher demand and not enough capacity, so the signs are for a remarkably busy traditional peak season from September through to Chinese New Year.”