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July 6 2020

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Spotlight 6 The Journal of Commerce | July 6 2020 Losing elevation Forwarders and analysts believe air cargo prices will remain at historically high levels through the summer, supported by disrupted supply chains as manufacturing ramps up and by reduced capacity for ocean transport because of extensive blank sailings. The forecast for rates to remain elevated above year-ago levels comes despite prices falling off their May highs on the easing of urgent demand for medical supplies to treat the coronavirus dis- ease 2019 (COVID-19). Shanghai–North Europe rates led the decline in the week ending June 19, falling 30 percent from the previous week to $3.70/kg. Shanghai–North America rates were down 6.3 percent to $4.74, according to the TAC Index. Shanghai–North Europe rates are 44 per- cent above year-ago levels, while Shanghai–North America prices are 51 percent higher. Edoardo Podestà, chief operations officer, air and sea logistics for Dachser Group, said rates remained at historically high levels, even though they were much lower compared with a few weeks ago. "The masks and personal protective equipment (PPE) shipment boom is basically over, and freight rates have been decreasing sharply in the last few weeks from the madness we saw in April and early May," he told The Journal of Commerce. The Journal of Commerce Executive Editor, The Journal of Commerce and JOC Events: Chris Brooks 609 649 2181, Executive Editor, The Journal of Commerce and Mark Szakonyi 202 872 1234, Managing Editor: Benjamin Meyer 916 716 6272, Associate Managing Editor: Kevin Saville, 212 488 4282, Senior Editors: William B. Cassidy Trucking and Domestic Transportation 202 872 1228, Bill Mongelluzzo, West Coast 562 428 5999, Eric Johnson, Technology 213 444 9326, Janet Nodar, Breakbulk and Heavy Li 251 473 2742, Greg Knowler, Europe +44 7976798770, Turloch Mooney, Global Ports +852 9011 9109, Ari Ashe, Southeast Ports, Intermodal Rail 202 548 7895, Data Analyst: Marcin Lejk , +44 587416270, Shipper Engagement Manager: Dustin Braden, 646 679 3450, Senior Editor, Special Projects: Alessandra Gregory Barrett, 860 248 5238 Associate Editor, Special Projects: Emily DeVoti, Senior Designer: Sue Abt, Associate Production Manager: Kate Binder, 603 346 4680, Designer: Hannah Kidd, +442032532134, Sales: Cindy Cronin, Associate Director Southeast sales, 954 260 6061 Jean Gibbons, Senior Sales Executive West Coast sales, 706 469 7160 John Knowles, Senior Sales Executive EMEA sales, +44 7779974677 Allyson Marek, Senior Sales Executive Northeast sales, 862 754 8012 Alex Remstein, Associate Sales Specialist Reprints/Classifieds/Copyrights, 646 679 3418 Mehdi Smaili, Senior Sales Executive APAC sales, +44 7581406491 Judy Welp, Senior Sales Executive Midwest sales, +1 512 284 2878 For Magazine Subscription Customer Service: 450 West 33rd St., 5th Floor, New York, N.Y. 10001 800 952 3839 Vice President, Maritime & Trade, IHS Markit, Peter Tirschwell Executive Director, Media & Events, Maritime & Trade, IHS Markit, Amy Middlebrook Manager, Production, Carmen Verenna Product Manager, JOC, Stephen Lyman ©2020 The Journal of Commerce — All Rights Reserved For more information, visit our website, $1.2 $3.2 $5.2 $7.2 $9.2 $11.2 $13.2 Jun.24 (Week 26) Jul.22 (Week 30) Aug.19 (Week 34) Sep.16 (Week 38) Oct.14 (Week 42) Nov.11 (Week 46) Dec.09 (Week 50) Jan.06 (Week 2) Feb.03 (Week 6) Mar.02 (Week 10) Mar.30 (Week 14) Apr.27 (Week 18) May.25 (Week 22) Jun.22 (Week 26) Shanghai to N.Europe Shanghai to Nor th America Air cargo rates from China to Europe, North America fall off May highs Source: TAC Index © 2020 IHS Markit The average weekly spot rate per kilogram (2.2 pounds) from Shanghai to North Europe and North America Up 51% from June 2019 Up 44% from June 2019 heychli /

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