Signs of China-US air freight rates on the rise: FIS
FOLLOWING one of the softest markets in air freight seen for some time with air freight rates in February thought to have fallen to their lowest point in 18 months, there are signs of China-US rates improving
FOLLOWING one of the softest markets in air freight seen for some time with air freight rates in February thought to have fallen to their lowest point in 18 months, there are signs of China-US rates improving.
The market had been so depressed that IATA was forced to downgrade its annual growth forecast from 3.7 per cent to 2 per cent, just to account for the first quarter of the year.
But, according to The TAC Index and Freight Investor Services (FIS), China-US, at least, has already hit rock bottom in both air and sea.
'The China-US basket continues to reflect an improvement of rates, indicating that the lane has already reached its base for 2019. This correlates with indications that China exports have already reached their low point in both air and sea modes,' noted FIS.
According to new weekly data, air freight rates have risen 3.3 per cent on the tradelane, to US$3.44/kg Hong Kong-US has gone up 5.2 per cent, while Shanghai-US has risen 1.7 per cent.
A Hong Kong-based forwarder confirmed to FIS that demand was improving and that the index was highly reflective of the market.
However, China to Europe rates have not improved. The basket drop has been 1.1 per cent, to $2.70, 'reflecting an overall decrease in Europe imports', noted FIS.
'Rates into Frankfurt and Amsterdam present high levels of volatility, while rates into London remain at fairly flat levels,' it continued.
On the transatlantic, which reportedly didn't suffer the same declines in February as routes out of Asia, there remains some volatility, said FIS, based on Frankfurt to North America data.
Airlines are appearing to be more upbeat, reports the London's Loadstar.
'The hope is that the worst is over, after a big Chinese New Year dip,' said Lufthansa Cargo chief commercial officer Dorothea von Boxberg. 'We are seeing a nice upward trend.'