All Stifel articles
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News
Airfreight rates expected to slide this year on 2023 levels
Airfreight rates are expected to continue to decline this year compared with 2023 levels as belly capacity continues to return to the market.Writing in his monthly Baltic Exchange column, Bruce Chan, director and senior research analyst covering global logistics and future mobility, at investment bank Stifel, said that international passenger ...
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News
Latest BAI figures inspire mixed feelings
The latest Baltic Exchange Airfreight Index (BAI) just released (in early November) suggests that rates outbound from Asia accelerated in October, but not by enough to change expectations for a muted peak season – so writes Bruce Chan, director and senior research analyst covering global logistics and future mobility at ...
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NewsAre recent air cargo improvements the start of a full market recovery?
There is no doubt that the air cargo industry has seen some improvement over the last few weeks but there is debate over whether this represents the start of a full recovery for the market.The latest rate figures indicate a tightening of supply and demand with last week's numbers from ...
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Air cargo set for slow recovery as it reaches the bottom
Air cargo volume declines have bottomed out but are expected to remain in the doldrums for a while yet.Writing in the latest Baltic Exchange air cargo market newsletter, Bruce Chan, director and senior research analyst covering global logistics and future mobility at investment bank Stifel said that the company felt ...
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News
Have air cargo rate and volume declines bottomed out?
The big two questions posed in the latest Baltic Exchange air cargo market update were whether rates and volumes had reached the bottom.Tackling the question on demand, Bruce Chan, director and senior research analyst covering global logistics and future mobility at investment bank Stifel, outlined three scenarios.Chan's bull thesis is ...
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News
Reduced demand and returning belly capacity result in "double whammy" for airfreight rates
Soft demand and continued returning belly capacity combined to hit airfreight rates again in May, and pressure on rates is expected for the rest of the year."2023 airfreight rates continue to grind lower, and the month of May was no different, enduring a double whammy of soft demand and the ...
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NewsRates continue to soften
Image source: ShutterstockA muted peak season has seen air cargo rates continue to soften in the fourth quarter, crossing below 2020 peak season levels in some cases, but a late season surge in volume is still possible.October air cargo yields saw continued “sequential deceleration from mid-year levels and perhaps even ...
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News
Airfreight rates to stay above pre-Covid despite muted peak
Airfreight rates are expected to stay above pre-Covid levels for some time despite a muted peak season.Over the last few months, air cargo rates have been falling, said senior analyst at investment bank Stifel Bruce Chan in the latest Baltic Exchange newsletter.However, while they are expected to slip further given ...
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News
Airfreight rates to grind lower despite high inventories
Airfreight rates are expected to "grind directionally lower" or remain stable compared with current levels despite figures showing high inventory levels.Writing in his monthly column in the Baltic Exchange newsletter, senior analyst at investment bank Stifel Bruce Chan pointed to US Census Bureau figures that showed inventory levels continued to ...
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News
Unexpected airfreight rate stagnation down to fuel prices and a slowing market
Many had expected the opening up of Shanghai and Hong Kong following strict Covid lockdowns to result in a surge in rates from Asia as factories played catch up following months of closure.However, TAC Index figures show that rates actually declined marginally in June compared with May from Hong Kong ...
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News
China airfreight rates predicted to rise in coming months
Airfreight rates out of China are expected to rise over the coming months while the peak season could be muted, according to Bruce Chan, senior analyst at investment bank Stifel.In the latest Baltic Exchange market round-up, Chan said that rates out of Hong Kong and China had remained high over ...
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News
Airfreight space constraints and high rates set to continue
Capacity constraints and high air cargo rates are expected to continue for the time being as the industry continues to battle with the impact of Covid-19.In the latest Baltic Exchange market round-up, industry observers say that ongoing issues in ocean freight and the emergence of the omicron variant have delayed ...
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News
Omicron set to restrict cargo capacity and keep rates high
The Omicron variant is set to keep air cargo capacity tight and as a result air cargo rates will remain at an elevated level.In the latest Baltic Exchange market update, investment bank Stifel senior analyst Bruce Chan said that the new variant will restrict network capacity due to safety protocols, ...
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News
Air cargo rates up in August as peak season looms
Air cargo rates on major east-west trade lanes began to pick up in August as the industry faced supply chain disruption due to lockdowns in China and the peak season looms (see dashboard below).The latest figures from the Baltic Exchange Air Freight Index (BAI) show that in August average prices ...
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News
Preighters unlikely to offset rising air cargo demand
The use of passenger aircraft in an all-cargo configuration is unlikely to offset rising air cargo demand for the peak season.Writing in the Baltic Exchange monthly market summary, Bruce Chan, vice president of global logistics at investment bank Stifel said that issues in ocean shipping, high ocean prices and ongoing ...
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InsightsRates stable in July but elevated prices expected into 2022
Image: ShutterstockAirfreight prices on major east-west trade lanes remained stable in July — albeit at a high level — and expectations are that pricing will remain elevated this year.The latest figures from the Baltic Exchange Air Freight Index (BAI) show that in July average airfreight rates from Hong Kong to ...
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News
Airfreight market set to get worse before it gets better for buyers
Buyers of airfreight capacity should expect the market to get worse before it gets better, according to Bruce Chan, vice president of global logistics at investment bank Stifel.Writing in the Baltic Exchange monthly market summary, Chan said that belly capacity is not expected to return until 2023 at the earliest.And ...
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News
Air cargo rates set to stay elevated during summer lull
Airfreight rates cooled as the month of May progressed but this is unlikely to signify the start of a return to pre-Covid levels.The latest figures from the Baltic Exchange Air Freight Index (BAI) show that rates from Hong Kong to North America increased to $8.70 per kg in May from ...
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Transpacific airfreight rates climb in April
Airfreight rates from Hong Kong to North America took off in April as a combination of capacity shortages and rising demand hit the market.Baltic Exchange Air Freight Index (BAI) figures show that in April the average price on services from Hong Kong to North America increased by 54.7% compared with ...
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News
Shippers urged to get creative to combat space shortages
Shippers have been urged to get creative as capacity shortages and high rates in air cargo and other modes are expected to continue.In the latest Baltic Exchange airfreight rate newsletter, Bruce Chan, vice president of global logistics at investment bank Stifel, said that over the next few months capacity could ...