Weekly Air Operations Update: Shanghai to Europe, US and Australia 14/04/23

Shanghai to London

• The market is fallen back slightly this week, with volumes decreasing in Europe as Easter comes to an end
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• Space is currently open
• Rates are down slightly this week

Shanghai to New York

• The market is relatively stable, with prices stabilising; the overall price level is still high
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• Space is currently open
• East USA rates stable

Shanghai to Los Angeles

• The market is relatively stable, with prices stabilising; the overall price level is still high
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• Space is currently open
• West USA rates stable

Shanghai to Frankfurt

• The market is fallen back slightly this week, with volumes decreasing in Europe as Easter comes to an end
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• Space is currently open
• Rates are down slightly this week

Shanghai to Melbourne

• Space on the Australia route is getting tight as electronics manufacturers are launching new products, and prices are rising
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• Space is currently open
• Air rates are beginning to rise slowly

Shanghai to Sydney

• Space on the Australia route is getting tight as electronics manufacturers are launching new products, and prices are rising
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• Space is open
• Air rates are beginning to rise slowly

Market intel

• Rising belly capacity, inflation, drives air freight rate decline

  TRANSATLANTIC westbound air cargo volume in March registered its first monthly decline in two years with high US inflation blamed for the shortfall, reports New York's Journal of Commerce.
  While demand has only just begun to slide, spot rates have been falling for months and are down by 30 per cent since January.
  
  The falling rates are having an impact on how forwarders buy space on planes. Xeneta data shows that in March, 54 per cent of total market volume for air cargo shipments were procured on the spot market rather than through fixed-price agreements, much higher than the pre-Covid levels.
  
  Large volumes are expected to stay in the spot market with persistent downward pressure on rates as belly cargo capacity increases, said Xeneta.
  
  Airlines have significantly increased passenger flights on the transatlantic over the past year as Covid travel restrictions ended.
  
  Flights have increased even more with the start of the International Air Transport Association (IATA) summer schedule that runs from March 26 to the end of October. The aircraft used on the trade route are wide body planes with greater belly hold capacity.

• N. China
  

  Runway maintenance at Shanghai airport is impacting capacity from China. There is still enough capacity to move the demand and no backlog as of now, but rates from China will likely go up soon as a result.

• S. China

  European and American markets continued to rise this week, and prices remained relatively high.