Increase in air freight rate in July despite market slowdown

Air freight rates are increasing since July this year irrespective of market slowdown.

Generally with market slowdown the air freight rates also show decline but not this year as it seems that major cargo hubs are under pressure based on available cargo handling.

As per below TAC index the prices on Hong Kong to North America increased by 16% in July.

Similarly for Hong Kong to Europe the prices increased by 23% 

The forward curve prepared by FIS Invester says “Air Cargo rates have continued to grow throughout July and look to continue to rise, resulting in a reluctance of airlines to commit their space for quarter four early,” FIS’ Nicola Hughes said.

“This is in the hope that they will achieve greater rates through the spot market at a later date. Leading shippers and freight forwarders to look for smarter ways to secure capacity in an environment where time to market is critical.”