Air cargo rates and capacity fall as PPE demand weakens
AIRFREIGHT rates and capacity have both declined as demand for personal protective equipment (PPE) continues to slow, London's Air Cargo News reported
AIRFREIGHT rates and capacity have both declined as demand for personal protective equipment (PPE) continues to slow, London's Air Cargo News reported.
The latest figures from TAC Index show that air freight rates from Shanghai to North America declined by 12.8 per cent week on week to US$5.06 per kilogramme, while from Hong Kong to North America there was a 12.3 per cent drop to $5.33 per kilogramme.
Prices are still above this time last year when carriers were able to achieve $3.11 per kilogramme from Shanghai and $3.69 per kilogramme from Hong Kong.
From Shanghai to Europe there was a 12.8 per cent decline compared with a week earlier to $5.35 and from Hong Kong there was a 9.8 per cent drop to $4.16 per kilogramme.
During the same week last year, the average price stood at $2.52 per kilogramme from Shanghai and $2.69 per kilogramme from Hong Kong.
Meanwhile, carriers have continued to reduce the number of all-cargo passenger flights they operate. Overall air freight capacity is now at its lowest level since the start of May. Air cargo capacity is 27 per cent lower than this time last year.