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RATES ON KEY ASIA TRADES FLAT BUT STEADY IN SEPTEMBER

03 / 10 / 2024

By Damian Brett

Source: Supakitswn/ shutterstock.com

Airfreight rates on the transpacific market were largely flat in September but
are expected to pick up as the peak season approaches and as US port strikes are
now underway.

The latest figures from the Baltic Exchange Airfreight Index (BAI) calculated by
TAC Index show that rates from Hong Kong to North America in September edged up
by $0.02 compared with August to $5.98 per kg.





Meanwhile, from Hong Kong to Europe prices in September were up $0.23 cents
compared with August to $4.66 per kg. 



The flat rates come as prices around August and September tend to be fairly
steady as the industry prepares for the busier fourth-quarter peak season.





This year there have also been reports of a slower than expected air cargo
market during the month.

Freight forwarder Dimerco said that e-commerce and electronics volumes had
“underperformed expectations in September”.

The company also pointed out that while the Global Purchasing Managers Index
(PMI) Composite Output Index remained in positive territory, this was down to
the services sector and manufacturing is on a downward trend.

Airfreight rate index provider TAC said that the market was relatively quiet for
the period leading into Golden Week in China, starting October 1, when rates
usually rise a little.

Another contact told Air Cargo News that increased US scrutiny on e-commerce
goods entering the country and the imposition of stricter security requirements
for European and CIS cargo may have impacted the market in recent weeks.

Data provider WorldACD also noted a cooling of the air cargo market in September
as figures were affected by the one-day mid-Autumn festival in many east Asian
countries.

The data providers’ figures show that overall air cargo volumes fell 3% week on
week for the week ending September 22 [week 38]. Asia Pacific origins were down
6%.

However, it should also be remembered that rates remain far above last year’s
levels due to rapid demand growth experienced for the majority of 2023. Prices
from Hong Kong to North America are up 22% year on year and to Europe there is a
25.3% improvement.

Meanwhile, rates on services from Frankfurt to North America are down 7% on last
year.

Looking ahead many are expecting rates on all three trades to pick up. From
Asia, there will be the usual peak season boost to what is already a busy market
combined with the impact of US port strikes.

And rates on services on the Atlantic will also likely be boosted by the US port
strikes, while there is an expectation that capacity on the trade will shrink as
freighter operators move aircraft to the busy Asia trades and airlines take
bellyhold capacity out of the market as the passenger market enters the quiet
season.

> Airfreight rates and demand expected to rise as US port strikes get underway



> Cooler air cargo market in September just a blip



 



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RELATED TOPICS

 * Baltic Air Freight IndexTac IndexWorldACD


LATEST AIRFREIGHT RATES NEWS


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14 / 10 / 2024

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their highest level of the…

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PORT STRIKE SUSPENSION RELIEVES AIR CARGO PRESSURE BUT PEAK OUTLOOK REMAINS
TIGHT

By Damian Brett

07 / 10 / 2024

The suspension of US port strikes until next year has helped relieve some of air
cargo’s peak season capacity concerns…

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DHL POINTS TO A DIFFICULT Q4 AS MORE FIGURES CONFIRM A BUMPER AUGUST FOR AIR
CARGO

By Damian Brett

10 / 09 / 2024

DHL Global Forwarding’s latest market outlook has highlighted a difficult end to
the year, while figures from WorldACD show buoyant…

Read More


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DAMIAN BRETT

I have been writing about the freight and logistics industry since 2007 when I
joined International Freighting Weekly to cover the shipping sector. After a
stint in PR, I have gone on to work for Containerisation International and
Lloyds List - where I was editor of container shipping - before joining Air
Cargo News in 2015. Contact me on d.brett@aircargonews.net

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