Air freight rates out of China have continued to fall, although not at the pace they rose.
New figures for the past week from the TAC Index and Freight Investor Services (FIS) show China to Europe down $0.59, while China to the US is down $0.23. FIS said the slower rate drop was due to Hong Kong, where rates rose to the US by $1.14. Shanghai, however, fell $1.37 to Europe and $1.60 to the US. Seabury data from last week showed eastbound transpacific capacity grew 4% compared with last year, while Asia-Europe was down only 10%. Asia to Latin America was down 13% year on year. But, it added, “transatlantic air cargo capacity shows no signs of recovery yet”.
It said there was limited growth of passenger freighters on the transatlantic, with most added on routes to and from Asia, and intra-Middle East and south Asia. Passenger freighters had added close to 75,000 tonnes of air cargo capacity a week since the peak decline, but, as Seabury notes, most of it is directed towards the urgent demand for personal protective equipment (PPE).
Overall, global air cargo capacity is 26% lower than this time last year. FIS’s forward-looking rates suggest that next month will see China to Europe rates rise $0.32, but China to US will fall $0.40. It forecasts that in July, both lanes will lift $0.20.
Source, The Loadstar, 27 May
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