EXTRA air cargo capacity is softening rates on transatlantic routes, according to Xeneta, reports London's Loadstar.
'As of the end April (week 17), shippers from Europe to the US are reporting an average short term rate of US$4.10 per kg,' said rate-spotting Xeneta.
'Long-term rates have not yet followed the same downward trend as the spot market and, on 30 April, the average rate for long term contracts signed in the past three months was more than $1.70 per kg higher than the average short-term rate, at $5.90 per kg. Early indications show a softening in both rates in early May,' the agency said.
Other trade lanes have seen higher load factors, driven by constrained capacity rather than high demand.
On North America to western Europe, the dynamic load factor is at its lowest level since the start of the year, at 57 per cent. Long-term contract rates are at $2.30 per kg, while spot rates are at $1.50 per kg.
Rates Xeneta has reported are based on forwarders selling to BCOs - not airline rates.
The TAC Index also noted: 'Indices look soft this week, but data points are sparser than normal, especially in Shanghai, where sources say carriers, after a dramatic pulldown of capacity recently, are slowly coming back to market after a severe local lockdown.'
April saw some large rate falls, although Xeneta said there had been a slight recovery in the past week. The Baltic Air Freight Index, however, showed an overall 5.4 per cent decline in the week up to May 2, although it is still 13.2 per cent higher than a year earlier.
Major forwarders, however, are expecting a surge in volumes when Chinese production restarts. While the bulk of this is expected to go by sea, in time for the peak season, schedule problems and blank sailings could see some desperate shippers seek solutions by air, or sea-air, which could lead to a strengthening of rates.
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'As of the end April (week 17), shippers from Europe to the US are reporting an average short term rate of US$4.10 per kg,' said rate-spotting Xeneta.
'Long-term rates have not yet followed the same downward trend as the spot market and, on 30 April, the average rate for long term contracts signed in the past three months was more than $1.70 per kg higher than the average short-term rate, at $5.90 per kg. Early indications show a softening in both rates in early May,' the agency said.
Other trade lanes have seen higher load factors, driven by constrained capacity rather than high demand.
On North America to western Europe, the dynamic load factor is at its lowest level since the start of the year, at 57 per cent. Long-term contract rates are at $2.30 per kg, while spot rates are at $1.50 per kg.
Rates Xeneta has reported are based on forwarders selling to BCOs - not airline rates.
The TAC Index also noted: 'Indices look soft this week, but data points are sparser than normal, especially in Shanghai, where sources say carriers, after a dramatic pulldown of capacity recently, are slowly coming back to market after a severe local lockdown.'
April saw some large rate falls, although Xeneta said there had been a slight recovery in the past week. The Baltic Air Freight Index, however, showed an overall 5.4 per cent decline in the week up to May 2, although it is still 13.2 per cent higher than a year earlier.
Major forwarders, however, are expecting a surge in volumes when Chinese production restarts. While the bulk of this is expected to go by sea, in time for the peak season, schedule problems and blank sailings could see some desperate shippers seek solutions by air, or sea-air, which could lead to a strengthening of rates.
SeaNews Turkey
