Spotlight
6 The Journal of Commerce
|
July 6 2020 www.joc.com
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
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$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 / Shutterstock.com
