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DEMAND for air freight services from Hong Kong to Europe and North America has surged, driving up rates to levels surpassing those of the previous year, reports London’s Air Cargo News.
According to the Baltic Exchange Air freight Index (BAI), average all-in rates from Hong Kong to North America increased 6.5 per cent year-on-year to US$5.54 per kg in April.
Similarly, rates in Europe rose 12 per cent to $4.47 per kg during the same period.
This simultaneous rate increase marks the first time since July 2022 that both trades have exceeded the previous year’s levels.
The surge in demand is primarily attributed to booming e-commerce, particularly in sectors like fashion and consumer goods.
DHL Global Forwarding has noted a significant uptick in demand, especially in air capacity, driven by e-commerce and e-cigarette industries in China.
Notably, companies like Temu and Shein transport substantial cargo volumes to the West, operating on a direct delivery model from production to consumers, in contrast to traditional warehousing practices.
Despite this, alternative transport routes are emerging, with Temu exploring /air routes via Taiwan, Japan, and Korea into the US. These alternative paths result in higher freight rates than mainland China.
Meanwhile, data from WorldACD reveals a 13 per cent year-on-year increase in demand from Asia, further fueled by ongoing modal shifts due to the Red Sea shipping crisis.
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