AIR cargo has shrunk following Russia's invasion of Ukraine, with northeast Asia-Europe capacity shrinking up to 22 per cent, reports UK's The Loadstar.
Load factors have risen 1.5 per cent and are 84 per cent.
Rates to Europe from Japan have risen 15 per cent, to US$9.40, while ex-Korea saw rates rise 13 per cent to $8.60.
Europe-Asia Pacific has seen a five per cent hike in rates, with rates from EU to Japan up 11 per cent and to east China up six per cent.
One Asian forwarder noted that 'demand had been subdued as compared with the peak at the end of 2021'.
Said a master loader in China: 'There has been a lot of slowdown, even past Chinese new year, especially to the US and EU. Market rates dropped back to pre-Covid low season levels, as low as $3.2/kg to the east coast,'
'All the cargo we are currently booking is on the three main Chinese airlines, China Southern, China Easter and air China. We don't know whether they will stop these services.'
In addition, jet fuel price rises have gone up globally 27.5 per cent, with the Americas and EU seeing hikes of 32 per cent.
Said Clive Data Services managing director Niall van de Wouw: 'The war in Ukraine is another example of an external event of which the air cargo industry has no control over, but which is having a profound impact, as happened with Covid,'
'Whilst we were seeing some clear signs of normality returning, there is still so little slack in the global air cargo system. It is quite unlikely that the trend of slowly declining rates will continue in March. The war in Ukraine caused immediate capacity issues to northeast Asia and, therefore, will likely push up rates even more for these particular markets. Air cargo trucking services might also be affected as numerous Ukrainian drivers - which form an important share of the truck drivers in Europe - have decided to go back to their home country,' said Clive Data.
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Load factors have risen 1.5 per cent and are 84 per cent.
Rates to Europe from Japan have risen 15 per cent, to US$9.40, while ex-Korea saw rates rise 13 per cent to $8.60.
Europe-Asia Pacific has seen a five per cent hike in rates, with rates from EU to Japan up 11 per cent and to east China up six per cent.
One Asian forwarder noted that 'demand had been subdued as compared with the peak at the end of 2021'.
Said a master loader in China: 'There has been a lot of slowdown, even past Chinese new year, especially to the US and EU. Market rates dropped back to pre-Covid low season levels, as low as $3.2/kg to the east coast,'
'All the cargo we are currently booking is on the three main Chinese airlines, China Southern, China Easter and air China. We don't know whether they will stop these services.'
In addition, jet fuel price rises have gone up globally 27.5 per cent, with the Americas and EU seeing hikes of 32 per cent.
Said Clive Data Services managing director Niall van de Wouw: 'The war in Ukraine is another example of an external event of which the air cargo industry has no control over, but which is having a profound impact, as happened with Covid,'
'Whilst we were seeing some clear signs of normality returning, there is still so little slack in the global air cargo system. It is quite unlikely that the trend of slowly declining rates will continue in March. The war in Ukraine caused immediate capacity issues to northeast Asia and, therefore, will likely push up rates even more for these particular markets. Air cargo trucking services might also be affected as numerous Ukrainian drivers - which form an important share of the truck drivers in Europe - have decided to go back to their home country,' said Clive Data.
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