Weekly Air Operations Update: Shanghai to Europe, US and Australia 13/10/23

Shanghai to London

• The capacity issue has been solved; rates remain at a high level
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• It is likely rates will continue to increase until mid-December

Shanghai to New York

• The capacity issue has been solved; rates remain at a high level
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• It is likely rates will continue to increase until mid-December

Shanghai to Los Angeles

• The capacity issue has been solved; rates remain at a high level
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• It is likely rates will continue to increase until mid-December

Shanghai to Frankfurt

• The capacity issue has been solved; rates remain at a high level
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• It is likely rates will continue to increase until mid-December

Shanghai to Melbourne

• Space is tight and rates are at a high level
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• Rates are still at a high level following the Golden Week holiday

Shanghai to Sydney

• Space is tight and rates are at a high level
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• Rates are still at a high level following the Golden Week holiday

Market intel

• Asian air export rates up in Q3 as cargo demand hardens
  AIR freight spot rates from Shanghai to North America rose 20 per cent from July 1 to the end of September when air cargo demand picks up ahead of the October 1 start of China's national Golden Week holiday, reports New York Journal of Commerce.
  "While we don't expect a typical peak season for air freight, there has certainly been considerable tightening in the space over the last several weeks, with pricing spiking significantly in certain pockets," said SEKO Global Logistics vice president Chris Gregg.
  "By the middle to late October, we will likely know whether we are seeing signs of a climb out of the trough, or this is simply a temporary spike," Mr Gregg said.
  Air cargo spot rates from Shanghai to North America ended September at US$4.76 per kilogramme, up just over 20 per cent from the start of the third quarter, according to the Baltic Air Index (BAI). The Shanghai-North Europe rate of $3.58 in the last week of September was 18 per cent higher than the July 1 price.
  Niall van de Wouw, chief air freight officer at rate benchmarking platform Xeneta, who has already discounted any peak season later this year, said rising rates despite excess capacity were more a reflection of the increasing operating costs of airlines.
  "Next to the demand and supply ratio, there is also the component of absolute costs," said Mr van de Wouw. "The costs of finance, energy and staffing, to name just a few, have gone up quite a bit since 2019."
  Global air cargo capacity in September was up 11 per cent compared with last year as passenger air services continue to return to the market, with capacity on the trade lanes out of Asia-Pacific up 32 per cent year over year against a nine per cent rise in demand, according to data from Netherlands-based air cargo analyst WorldACD. (Source: SeaNews)
  
  
• N. China
  

  The current space situation in North China is still very tight due to the stable shipping volume of e-commerce cargo, the market rates are still at a high level.
  
  

• S. China
  

  The space issue has been solved but the market rates are still at a high level due to the stable shipping volume of e-commerce cargo.