Middle East and South Asia air freight rates start to hit peak season levels: WorldACD
TEXT: Despite economic and geo-political challenges, air cargo spot rates have hit a new height in the first week of September, as the industry braces for transpacific-heavy demand in Q4. In fact, general spot rates globally went up 6% in week 36, according to WorldACD, 30% higher than a year earlier. The Middle East and South Asia went up 7% – 41% and 101% higher year-on-year, respectively.
Contract rates have also gone up 3% week-on week, marking a 16% year-on-year rise – and 51% higher than the same week in September 2019.
“We are already full,” Jeffrey Van Haeften, Emirates SVP cargo commercial worldwide, stated at the EU CBEC conference (European Cross Border E-Commerce Conference). The event was held, this year in Belgium from 10-11 September. “This year, demand will be much higher, and therefore we really believe whatever we do in capacity, it will be an issue.”
Rob Veltman, VP cargo Europe for Qatar Airways, stated that: “Right now the rates are going up overall, because there is a shortage of capacity. That will go on for a while. People are still buying. There is heavy inflation everywhere in a lot of countries, so people want to buy cheap items on the internet. So we are catering for that towards the peak season. What will happen afterwards, we will see.”
Freightos noted that the increase in demand has already started. “The surge in e-commerce volumes moving by air is now having an impact beyond China, with reports of congestion at air hubs in Korea, Taiwan, Japan and the Philippines even before the expected increase in Q4.”
