Industry news
Industry news
Will the arrival of the peak season affect the stability of air cargo?
Aug 29,2022

 

As the industry moves towards the traditional peak season, the air cargo market remains stable. Overall air freight rates are currently down last week compared to the previous seven days.

 

Prices were not volatile in most major outbound locations, with Shanghai seeing the biggest increase (compared to a week ago) at 2.4% and a year-on-year change of 13%.


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With inventories remaining high and China still not fully reopening from the COVID-19 lockdown, the rest of the Asia-Pacific region is expected to report higher interest rates.

 

However, prices from Vietnam to the U.S. fell 6.3%, a year-on-year change of 24.6%, and prices from India to the U.S. fell 14.7% from the previous week and 9.8% from last year.

With the peak air cargo season underway, many observers still expect prices to firm, while others believe that if China fully reopens, it could add a lot of extra belly capacity -- which could have the opposite effect.

 

Elsewhere, freight forwarders also reported a calmer market in terms of disruption and demand. The demand in North China is sluggish, and the overall market is stable.

 

Market demand on the Trans-Pacific eastbound and Far East-Europe westbound (FEWB) routes remained weak and rates were stable.

 

For the FEWB trade lane, demand is expected to increase as we approach the end of summer. Freight forwarders also report that prices have fallen as the chaos in the container shipping supply chain eases, moving from air to sea freight.

 

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