More signs of some improvement in air cargo

Photo: Jaromir Chalabala/ Shutterstock

More reports have emerged this week suggesting that there might be a slight improvement in the air cargo market led by the ramping up of production in China.

In its latest weekly market report, data provider TAC Index pointed out that the overall Baltic Air Freight Index covering prices by forwarders rose 3.5% in the week to March 6.

“After a prolonged period when spot prices had been falling and contracts getting renegotiated at lower levels, sources suggest the market may finally be close to reaching a bottom, with China reopening and the busy summer season coming soon,” TAC said.

The data provider had previously noted reports of spot rate and volume increases as production in China slowly ramps up again.

Elsewhere, freight forwarder Flexport also noted improvements in demand. 

The forwarder said that transpacific eastbound demand from north China was continuing to increase leading to tight capacity situations.

“The main contributing factor is an increase in e-commerce demand. As a result, rates have increased this week,” Flexport said.

The company said that from south China supply is tight with demand increasing in the market, resulting in rates increasing from the week prior.

On the other hand, demand out of Taiwan, Korea and Southeast Asia remained soft.

From the Americas, demand remained steady while from Europe demand has increased with fluctuations in rates.

First signs of recovery in air cargo?

Share this story

Related Topics

Latest airlines news

WorldACD figures show extent of sea-air growth

The latest weekly figures from data analyst WorldACD show an upswing in volumes at sea-air hubs as a result of…

Read More

Share this story

TIACA survey reveals growing pressure on sustainability in air cargo

TIACA’s latest sustainability survey has revealed a growing focus on sustainability in air cargo but also a gap between the…

Read More

Share this story

Korean Air and Vienna Airport partner on cargo

Korean Air has signed an agreement to strengthen its air cargo partnership with Vienna International Airport. The partnership aims to…

Read More

Share this story

Damian Brett

Damian Brett
I have been writing about the freight and logistics industry since 2007 when I joined International Freighting Weekly to cover the shipping sector.After a stint in PR, I have gone on to work for Containerisation International and Lloyds List - where I was editor of container shipping - before joining Air Cargo News in 2015.Contact me on [email protected]