Air freight rates soar in 2024! Chinese goods dominate the global market
According to the latest data, e-commerce demand has become the main driver of growth in the global air freight market, and two-thirds of China's air freight volume may come from e-commerce business. In this context, freighter operators are also taking advantage of high demand to push up freight rates.
According to WorldACD, global market-wide air freight rates rose 2 percent in the week ending Dec. 1 to reach $2.84 / kg, a new high for the year. Spot freight rates rose 3 percent, including a 4 percent increase in the Asia-Pacific region and a 3 percent increase in North America. With the US Thanksgiving holiday over, capacity is starting to stabilise.
Asian markets are growing strongly and freight rates are rising sharply
WorldACD also noted significant increases in weekly freight rates from selected Asian markets such as China, Hong Kong, Taiwan, Japan, South Korea and Vietnam. The details are as follows: China: $5.10 / kg, an increase of 7% sequentially Hong Kong: $6.25 / kg, an increase of 9% sequentially Japan: $4.97 / kg, an increase of 6% sequentially South Korea: $5.49 / kg, an increase of 6% sequentially Taiwan: $4.07 / kg, an increase of 5% sequentially Vietnam: $4.88 / kg, an increase of 3% sequentially.
Freight rates in these markets were higher than in the same period last year, particularly in Japan and Vietnam, which increased by more than 30 per cent year on year, and in Taiwan, which increased by 46 per cent year on year.
However, he also noted that freighter operators were taking advantage of future capacity constraints - such as port strikes on the East Coast and the Bay Area, the implementation of new tariffs and massive schedule changes by shipping lines - to raise contract rates. "A number of major freighter operators have significantly increased their annual BSA rates in Europe by more than $1.40 per kg, which is significantly higher than rates for 2024," he said. As far as I can remember, this is a record high for the past several years."
CargoFacts Consulting analysis said: "The expected imposition of US tariffs on Chinese imports in early 2025 will prompt companies to rush goods before the tariffs take effect, which will trigger a surge in demand in the first quarter of 2024." "This wave of demand will put additional pressure on the logistics network and tight air capacity will drive freight rates higher."
According to WorldACD, global market-wide air freight rates rose 2 percent in the week ending Dec. 1 to reach $2.84 / kg, a new high for the year. Spot freight rates rose 3 percent, including a 4 percent increase in the Asia-Pacific region and a 3 percent increase in North America. With the US Thanksgiving holiday over, capacity is starting to stabilise.
Asian markets are growing strongly and freight rates are rising sharply
WorldACD also noted significant increases in weekly freight rates from selected Asian markets such as China, Hong Kong, Taiwan, Japan, South Korea and Vietnam. The details are as follows: China: $5.10 / kg, an increase of 7% sequentially Hong Kong: $6.25 / kg, an increase of 9% sequentially Japan: $4.97 / kg, an increase of 6% sequentially South Korea: $5.49 / kg, an increase of 6% sequentially Taiwan: $4.07 / kg, an increase of 5% sequentially Vietnam: $4.88 / kg, an increase of 3% sequentially.
Freight rates in these markets were higher than in the same period last year, particularly in Japan and Vietnam, which increased by more than 30 per cent year on year, and in Taiwan, which increased by 46 per cent year on year.
However, he also noted that freighter operators were taking advantage of future capacity constraints - such as port strikes on the East Coast and the Bay Area, the implementation of new tariffs and massive schedule changes by shipping lines - to raise contract rates. "A number of major freighter operators have significantly increased their annual BSA rates in Europe by more than $1.40 per kg, which is significantly higher than rates for 2024," he said. As far as I can remember, this is a record high for the past several years."
CargoFacts Consulting analysis said: "The expected imposition of US tariffs on Chinese imports in early 2025 will prompt companies to rush goods before the tariffs take effect, which will trigger a surge in demand in the first quarter of 2024." "This wave of demand will put additional pressure on the logistics network and tight air capacity will drive freight rates higher."
