Is the Market Stabilizing?
Tip of the Month
- Consider shipping priority service if your cargo is very urgent, particularly if shipping to Asia.
There is no doubt that limited capacity has stressed the air market, pushing cargo rates to fluctuate up to priority service pricing for standard transit times.
Here are our top seven things to know about airfreight to help you prepare your inbound and outbound shipments:
- China’s national holiday is over, but the lockdown is far from lifted. There is no official announcement from the Chinese government on when the lockdown will end. Gradual easing measures may begin around May 15th, with the possibility of the complete lockdown lifting in early June. Flight capacity is slowly improving, but trucking remains a problem as the lockdown continues.
- U.S. outbound to Asia Many freighter cancelations are causing a heavy backlog on most APAC lanes.
- Cargo to Singapore, Hong Kong, Manila, Bangkok, Penang, and Jakarta has a much more severe backlog, significantly challenging securing freighter space to these destinations.
- Lift into China is currently nonexistent due to the Covid lockdown.
- Penang priority bookings are experiencing 4-5 day transit times, with non-priority at 6-7 days transit.
- Due to capacity and demand, carriers to Singapore are charging priority rates for cargo moving on regular service.
- U.S. outbound and inbound Japan pricing and capacity are showing signs of stabilizing.
- U.S. outbound to Europe and the Americas capacity is becoming stable, with rates offered on an ad-hoc basis.
- Fuel cost continues to rise as global oil prices increase. Fuel is hitting record highs which is significantly impacting the cargo industry. Carriers continue to increase fuel surcharges due to increasing energy costs.
- Pricing, in general, continues to fluctuate, with most carriers offering pricing on an ad-hoc basis with short-term validity.
- 100% Cargo Screening Mandate continues to delay air cargo shipping.
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