Airfreight rates ex-China, HKG rebound in July

Airfreight rates saw mixed results in June with some rebound in July, as Shanghai fully lifted its COVID-19 restrictions and growing passenger activity on the trans-Atlantic trade lane lifted some pressure off freighter capacity. However, most airfreight rates continue to be significantly higher compared to 2021. [caption id="attachment_57065905" align="alignnone" width="1152"] Photo/TAC Index[/caption] Rates on the China-U.S. trade line had been declining since May 30 before rebounding 9.9% to $8.54/kg between June 27 and July 4, and up 23.8% year over year for the week, according to TAC Index data. Meanwhile, rates from Hong Kong (HKG) to some major U.S. airports were especially high, including to Dallas Fort Worth International Airport (DFW) and John F. Kennedy International Airport (JFK), where week over week they were up 17.8% to $8.62/kg, and up 2.8% to $7.83/kg, respectively, during the same period. In contrast, routes from HKG to other major U.S. airports fell, including to Los Angeles International Airport (LAX), which dipped1.8% to $8.12/kg during the same period. Rates from Shanghai were slightly lower. For instance, Shanghai-DFW was down 6.4% to $9.63/kg, while Shanghai-Chicago rates were posted at $8.10/kg, down 1.2% WoW for the same period. Meanwhile the China-Europe trade lane has stayed relatively flat since dropping after April 25, according to the TAC Index. Between June 27 and July 4, rates were up 1.4% WoW to $7.30/kg. Despite the small increase overall, rates continued to drop for some routes. For instance, from HKG to Frankfurt (FRA), rates were down 3.8% to $6.14/kg during the same period. Rates on the U.S.-Europe trade lane are also fairly flat WoW, down 2.6% to $1.89/kg from June 27 to July 4, according to TAC Index. Meanwhile rates on trans-Atlantic trade lane dropped in June. For example, airfreight rates from FRA to North America were down 14.4% to $3.69/kg between June 27 and July 4, and rates from FRA to Southeast Asia were down 14.9% to $2.57/kg, albeit up 64.7% YoY, according to the Baltic Exchange Air Freight Index (BAI). Rates from FRA-U.S., however, were up 8.8% to $4.46/kg during the same period. June in general saw mixed results following the reopening of Shanghai from COVID-19-related lockdowns . While some stakeholders anticipated a surge in airfreight demand , the shutdowns hindered the production of raw materials needed for manufacturing activity , triggering a production and demand shortage . The rising price of jet fuel has also continued to have an impact on airfreight rates. June’s peak rate was $4.40 per gallon as of June 16 , up 140% YoY. The monthly average for jet fuel in June was $4.12 per gallon, according to data from the Energy Information Administration (EIA). With regard to cargo, shipments including fashion and automotive remain in high demand, despite rising inflation, according to today’s market summary from BAI.

Airfreight rates ex-China, HKG rebound in July

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