Air freight rates on key Asian routes remained “firm” in June, despite the market entering a quiet summer.
The latest data from the Baltic Exchange Air Freight Index (BAI) shows that freight rates from Hong Kong to Europe and North America remain higher than a year ago and are also up slightly compared to May levels.
From Hong Kong to North America, the average freight rate paid by forwarders in June was $5.75 per kg, up 16.9% from the same period last year. Prices also rose from $5.53 per kg in May.
Meanwhile, from Hong Kong to Europe, freight rates in June rose 22.3% year-on-year to $4.56 per kg. In May, the average price on this trade was $4.41 per kg.
Prices stabilized or even fell in June compared to May, as demand stabilized due to the quieter summer and extra belly capacity was added during the summer travel season.
Neil Wilson, editor of date provider TAC Index, explained in his monthly column for the Baltic Exchange newsletter: “The latest figures confirm that the market remains surprisingly strong during what is normally a slow time of year as extra bellyhold capacity comes into use due to increased summer traffic.”
The relative strength of the market reflects continued strong e-commerce activity driven by large Chinese exporters such as Tianmu and Shein, sources said.
“In addition, the sharp increase in ocean freight rates as ships detour from the Red Sea around the Cape of Good Hope has led to a sharp increase in ocean freight prices, making air freight look relatively cheaper.”
Wilson explained that a 2.3% rise in Hong Kong outbound routes in June pushed the index up 21.1% year-on-year.
Shanghai outbound travel fell slightly by 2.7% month-on-month, but was still a “significant” increase of 42.1 compared to last year.
