September 2022 – Air Market Update
By NNR USA In Insight On 15th September 2022
Tip of the Month
What is the best way to move freight?
When time is money, consider splitting your shipment, sending what you need now by air, and the rest by ocean. Air transportation remains more predictable than ocean, especially for longer transits.
Improvement continues in the air industry, including some decreases in fuel surcharges and shortened cargo handling wait times.
Air Capacity is improving. While higher passenger demand often means less capacity, the overall increase in flights has had a positive effect. A note that Singapore is still tight.
Fuel Surcharge are decreasing overall, often resulting in lower air freight costs when all-in rates are applicable.
Airport Congestion is still an issue in many markets including Brazil, China, Malaysia, and Singapore. However, conditions are better at O’Hare [Chicago] and JFK [New York].
Trucking Capacity is still a challenge but continues to improve overall.
Market Rates in Asia lanes are projected to decline, though it’s uncertain the direction the air freight market will go in Q4.
Cargo Screening remains a challenge relative to pails and drums.
Typhoon in China causes flight cancellations from Shanghai (PVG) and many flight delays due to bad weather, although conditions are starting to improve.