China is leading in rate hikes, with an 11.5% increase in Hong Kong compared to the previous week, although it has decreased by 2.2% compared to the same period last year. Air freight rates from Shanghai have also risen by 5.3% from the previous week, despite a 1.3% decrease compared to the same period last year, still leading in rate hikes in the Asian region.
TAC reports, “Air freight rates from both Hong Kong and Shanghai to the United States are currently higher than they were a year ago.” This overall increase is primarily driven by various events outside of China, including heavy snowfall in Anchorage disrupting Pacific traffic, along with volcanic activity and earthquakes in other locations, in addition to conflicts in Ukraine and Gaza.
The latest data from TAC Index indicates that the Baltic Air Freight Index has increased by 4.6% in the week ending November 20 compared to the previous seven days.
In recent weeks, Iceland has experienced thousands of earthquakes as a volcano on the island is poised to erupt. In 2010, air travel in Europe was disrupted when the Eyjafjallajökull volcano erupted in Iceland, spewing volcanic ash into the atmosphere and disrupting air travel.
Meanwhile, Cathay Pacific, based in Hong Kong, has also reported issues with operations in Anchorage. Ashish Kapur, Southeast Asia Cargo Director of Cathay Pacific, said, “Our cargo flights are departing from our hub with full loads, but some have been affected by disruptions. Across our system, we have seen more flight cancellations due to severe weather conditions in the past month, especially in Anchorage.”
Last week, data provider WorldACD also noted that air freight rates are rising despite stable transportation capacity compared to the previous week. WorldACD explained, “Air freight rates from the Asia-Pacific to North America are higher, possibly due to disruptions caused by heavy snowfall at Anchorage Airport in Alaska.”
In the foreseeable future, the air freight industry is expected to continue facing challenges due to the upward trend in freight rates. As the industry navigates these challenges, stakeholders will need to find innovative solutions to maintain efficient and valuable transportation services.
– Phata.com –
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