TSLA: OVERWHELMING SUPPORTCHRW: SHORT INTERESTDHL: REFLECTING ON GUIDANCEDHL: EXPRESS FOCUSDHL: FORWARDING UPSIDEMAERSK: FAILED BOUNCEATSG: DOWN AGAINMAERSK: RATES JOY AND PAINR: INVESTOR DAY AND HIGHER RETURNSWMT: PRICES ON WATCHTSLA: CEO PAY PACKAGECAT: STRONGDHL: SPOTTING TRENDSAAPL: ANOTHER HIGH
TSLA: OVERWHELMING SUPPORTCHRW: SHORT INTERESTDHL: REFLECTING ON GUIDANCEDHL: EXPRESS FOCUSDHL: FORWARDING UPSIDEMAERSK: FAILED BOUNCEATSG: DOWN AGAINMAERSK: RATES JOY AND PAINR: INVESTOR DAY AND HIGHER RETURNSWMT: PRICES ON WATCHTSLA: CEO PAY PACKAGECAT: STRONGDHL: SPOTTING TRENDSAAPL: ANOTHER HIGH Air Freight Forwarder
Airfreight rates have soared this month, as the market continues to be propped up by e-commerce and Red Sea disruptions.
WorldACD reported today that the av erage global air freight rates rose week on week by more than 2% between 1-7 April, and now sit at $2.54 per kg – 41% above April 2019 pre-Covid levels.
But the back-to-back airfreight rate rises have been dubbed “surprising” by Niall van der Wouw, head of airfreight at analytics platform Xeneta.
He told the new Loadstar Podcast : “I think I was not the only one who was surprised. If you would’ve asked people in October ‘what is your outlook for Q1?’ I don’t think many people would have expected demand increase to be double-digit year over year.”
The rise has been largely attributed to spot rate ‘hot spots’ that have emerged from Middle East and South Asia to Europe. Mr van der Wouw said: “What I’ve seen is that in India, Sri Lanka and Bangladesh, rates have gone through the roof and, in some cases, doubled compared with earlier this year.”
According to WorldACD, India to Europe spot rates rose to $4.13 per kg last week, representing a160% year-on-year increase. Moreover, Bangladesh to Europe spot rates have seen a 179% increase compared with last year, and now sit at $4.59 per kg.
Judah Levine, head of research at online freight marketplace Freightos, cited liner network disruption as a main contributor to the uptick in airfreight rates from the region.
He said: “There is still quite a strong ocean-to-air shift, especially out of India. Red Sea disruption is still pushing volumes to air, and in South Asia the volumes have increased by 95% since the disruption began.
“It’s likely we will see this increase continue as long as there are diversions,” he predicted.
Indeed, Mr van der Wouw said: “I’ve been hearing a lot of stories about apparel companies wanting their apparel on western shop shelves in time for spring, and not wanting to run the risk of moving it by ocean.”
Listen to Niall van der Wouw discussing the surprising surge of airfreight in this clip from the latest episode of The Loadstar Podcast:
WorldACD also noted that there had been a 6% average increase in rates from Asia Pacific origin points, likely due to the continued e-commerce boom originating from China and Hong Kong.
But Mr Van der Wouw assured that pressure would ease soon. He said: “We’ll see a lot of capacity coming into the market, because of the summer schedules of the passenger airlines, so that should provide some relief in some of these markets.”
However, while WorldACD predominately attributed the rising rates to cross-border e-commerce and Red Sea disruptions, it found an increase in jet fuel prices was also having an impact.
The data company reported jet fuel prices had risen by 4% in week 14, from the previous week, and 3% from the previous month.
Fresh warnings of further spot freight rate rises were issued on the first day of ...
There were further double-digit increases in container spot freight rates this week, after a series ...
The recent upsurge in spot rates is beginning to affect long-term contracts and, over the ...
Air cargo is on a pathway to double-digit growth this year, according to Xenta’s latest ...
Shippers and forwarders could find it “impossible” to position containers in the right place at ...
Passenger carriers are flocking to Latin America, pouring bellyhold capacity into a cargo market that ...
Container lines are increasingly building transhipment connections to mitigate the effects of longer transit times ...
All of the liner services that were affected by the limits on Panama Canal transits ...
Container trades back in 'pandemic-level territory' – with rates still rising
French ports face a month of chaos and disruption as workers strike
Threat of Canadian rail strike looms again after bid for conciliation fails
Blank sailings on the rise at Canadian ports as carriers fret over rail strike
Samsung lodges biggest complaint yet: for 96,000 'erroneous' D&D charges
Logistics players brace for US supply chain stress test as imports hit a high
Regional carriers dip toes in long-haul trades again as rates soar
Anyone got a ship for an east-west service? Carriers scramble for tonnage
ILA suspends contract talks over alleged automation at Mobile
Carriers launch new transpac shuttle services as Chinese exports surge
DSV, Kuehne, Mærsk & DHL – your next value delivery, please?
China boosts new-energy vehicle exports, sending them in boxes as tariffs loom
Cargo Integrity Group reveals the most dangerous cargo found in containers
MSC ULCV call adds to congestion at 'unprepared' port of Karachi
Evergreen splashes out $500m on feeder vessels and more containers
Air Freight Business FedEx to shed up to 2,000 posts in European consolidation