Following from our previous reports on this topic.
Freight forwarders are collaborating with shippers to devise strategies to navigate the evolving air cargo market as the peak season approaches, according to a report by Xeneta. The report highlights that e-commerce volumes continue to be a significant market indicator, with exported goods from China already witnessing a 30% increase this year. Xeneta’s Chief Airfreight Officer, Niall van de Wouw, warns shippers to brace for a challenging Q4, anticipating a seller’s market out of Asia and across the Atlantic.
Understanding the Market Trends
The average air cargo spot rate has seen its largest year-over-year growth of 24% to $2.68 per kilogram. On a corridor level, rates on shipments bound for North America saw the largest monthly increase from July. Rates from Europe to North America were up 7% month over month to $1.77 per kilogram in August, possibly due to the surging trans-shipments originating from Asia. Meanwhile, Southeast and Northeast to North America rates were up 6% MoM and 4% MoM to $6.15 per kilogram and $4.68 per kilogram, respectively.
Preparing for the Peak Season
As the peak season approaches, companies are announcing surcharges as shippers and freight forwarders look to secure capacity. DHL Express, for instance, plans to implement surcharges starting Sept. 15. Other companies are creating more market capacity, including freight forwarder Dimerco Express Group, which is launching a new weekly air freight charter service on Sept. 15 between Shanghai and Chicago. CMA CGM Air Cargo recently launched its first Transpacific connection connecting Hong Kong and Chicago.
