Air in Focus – Air freight rates from Asia continue to soar
Air freight rates out of Asia continue to soar skyward as the region catches up following Typhoon Chanthu and China shuts down for the Golden Week holiday.
In September the Baltic Exchange Airfreight Index prices from Hong Kong to North America breached the $10 per kg mark for the first time since the index started in 2015. Compared with a year ago, rates are up by 105.9%. Prices from Shanghai to North America are understood to be even higher at more than $11 per kg.
Meanwhile, rates from Hong Kong to Europe also climbed to a new high – hitting over $6 per kg during late September. From Shanghai to Europe prices are understood to be over $7 per kg.
The price increases come as the Golden Week national holiday in China started on October 1st which traditionally creates a rush in demand as the peak season approaches. Typhoon Chanthu also closed airports and grounded flights in Asia during the second week of September, disrupting supply chains.
“Market demand in Asia remains very strong throughout Q3 and extended transit times and price increases are expected into Q4,” remarked Alan Doolan, Air Freight Manager at Ace Express Freight.
“The fallout from the typhoon and the holidays in China are expected to cause disruptions throughout Asia well into Q4. Overall, the global Airfreight industry enjoyed significant demand growth for the first eight months of 2021, 22% above 2020 levels. The backlog in Asia and the high demand on all global routes makes it even more important that Irish Importers and Exporters work with an experienced Air Freight partner to find solutions that will maximise reliability and minimise costs.”
Ace Express Freight are the exclusive Irish Partner for global freight forwarder Hellmann Worldwide Logistics. Hellmann have a robust global airfreight partnership program with strong relationships at country, regional and global levels; empowering our Air Freight Team to secure the best possible service for our Irish customers. We also have our own dedicated in-house Customs Team to manage all aspects of Export / Import Customs Clearance, ensuring smooth passage for your shipments.
Ace Express Freight are also the Irish Partner for va-Q-tec operating the Dublin Temp Service Centre (TCS) for the certified global airfreight of temperature sensitive goods. From this TCS, advance passive containers vac-Q-tainer (for commercial shipments) and vaQproof/one (advanced passive cartons for sample and clinical trials) are conditioned and supplied in multiple sizes and temperatures with a Load and Go offering for closed chain solution to the Pharmaceutical and Life Science industries.