Airfreight Market Roundup: China dips while SE Asia stays strong
(FreightWaves) China gave the airfreight market a headfake last week. It gave the impression capacity was tightening to the point that rates would seek higher ground for the rest of the year in response to peak season shipping.
Instead demand tailed off as Apple slightly delayed the launch of its iPhone 12, with capacity slightly exceeding actual volumes. It was a similar story in many markets, according to WorldACD, with yields inching down or staying flat.
It may seem that shippers are catching a break on rates under the circumstances, but consider that any pause comes during a year that has seen significant inflation because of the shortage of aircraft to fly goods, especially as manufacturing bounces back from production slowdowns associated with the coronavirus pandemic. In August, spot prices were 67% above the rate for 2019 and 22 points higher than in July. As of Sept. 7, spot pricing was 54% greater than a year ago, according to investment bank UBS.
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