Airfreight rates on key trade lanes out of Hong Kong reached an annual high in December as demand hit peak levels.
Figures from the Baltic Exchange Airfreight Index, based on TAC data, show that average rates – a combination of both spot and contract – were up 8.5% in December compared with November levels to $6.73 per kg. This is a high for the year.
However, average prices were 5.2% down on the same month in 2023 and the level of increase between the two months was lower than a year earlier - a reflection of forwarders and shippers being more proactive in booking capacity and moving goods early.
From Hong Kong to Europe average rates increased 3.8% on November levels to $5.49 per kg. The December average to Europe was a high for the year and was also 2.4% ahead of 2023 levels due to extra demand created by the Red Sea shipping crisis.
However, prices also increased between the two months at a lower rate than they did in 2023, again reflecting pre-planning from shippers and forwarders to avoid any peak season spikes after being caught out in 2023.
Sources have indicated that since December spot rates have declined as is to be expected in the quiet post-Christmas period.
They should however begin to pick up in the weeks running up to the Chinese New Year which this year takes place on January 29.
In its weekly market summary for the end of December, TAC said that rates had started to decline towards the end of December, despite reports of shippers looking to move goods ahead of any tariff increase on goods from China from incoming US president Donald Trump, who is due to take power in mid-Janaury.
Towards the end of last year, Taiwan-based freight forwarder Dimerco Express said the air cargo market was unusually busy due to electronics demand, general cargo volumes and a rise in pre-tariff shipments.
