Freight forwarder, Flexport, expects air freight rates from China and Hong Kong to go up again in the next few months as capacity remains under pressure.
“Airfreight rates are rising again from Asia to the US and Europe. The catalyst is relatively stable commercial demand coupled with reduced capacity driven by freighter maintenance cycles and higher fuel costs that are reducing the number of flights by passenger freighters,” Flexport said in its latest market update.
Airfreight rates out of Asia has been stabilizing as capacity gradually returns on some routes after most planes were grounded the past months due to COVID-19 restrictions.
“Expect rates to continue to increase slowly over the July/August period and then accelerate higher in September as several major project launches (Sony Playstation 5, Apple iPhone 12 and Samsung) consume a vast amount of capacity,” Flexport added.
A separate TAC Index showed that the past week airfreight rates to North America from Shanghai dipped by 0.8% week on week to US$4.65 per kilograms (kg) while the same rates to Europe from Shanghai were up 8% to US$3.40 per kg.
Meanwhile, air freight rates to North America from Hong Kong — the world's busiest cargo hub — inched up by 8% week on week to US$5.12 per kg, while rates to Europe, also from Hong Kong was up 3.3% to US$3.14 per kg.