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.
