Recently, the "Black Friday" sales in Europe and the United States are approaching. During this period, consumers around the world will start a shopping spree. And only in the pre-sale and preparation stages of the big promotion, the freight volume showed a relatively high increase.
According to the latest Baltic Exchange Air Freight Index (BAI) based on TAC data, the average freight rate (spot and contract) from Hong Kong, China to North America in October increased by 18.4% from September to US$5.80 per kilogram. From Hong Kong to Europe, prices in October increased by 14.5% from September to $4.26 per kilogram.
Combined with the influence of flight cancellations, reduced transport capacity, and surge in cargo volume, air freight prices in Europe, America, Southeast Asia and other countries have also shown a trend of skyrocketing. Industry insiders reminded that air freight channels have seen frequent price increases recently, and the price of air freight in the United States has increased to the prefix 5. It is advised to verify the cargo shipping price before shipping.
It is understood that in addition to the surge in e-commerce goods caused by Black Friday and Double 11 events, there are many reasons for this price increase:
1. Impact of Russian volcanic eruption
A volcanic eruption in Russia has caused severe delays, diversions and layovers for some trans-Pacific flights to and from the United States.
Currently, the second-way cargo bound for shipping from China to Europe and the United States is being pulled and grounded. It is understood that both NY and 5Y flights in Qingdao have had flight cancellations and load reductions, and a large amount of cargo has accumulated.
Besides, there are signs of grounding in Shenyang, Qingdao, Harbin and other places, leading to a shortage of freight.
2. Military influence
Due to the influence of the US military, all K4/KDs have been requisitioned by the military and will be grounded in the next month.
3. Flight cancellation
Several European flights will also be cancelled, and some Hong Kong CX/KL/SQ flights have been cancelled.
Overall, capacity has been reduced, volumes have surged and air freight prices are likely to continue to rise, but that will depend on the strength of demand and the number of flight cancellations.
But price reporting agency TAC Index said in its latest market summary that the recent rate rise reflected "a rebound from the peak season, with rates rising across all major outbound locations globally".
At the same time, some experts predict that global cargo shipping costs may continue to rise due to geopolitical turmoil.
As we can see, air freight rates have been rising recently and are likely to continue to rise. In addition, Christmas and the period before Spring Festival are the super peak season of freight shipping. Now the international express delivery prices have also been rising accordingly when we quote prices to customers. So, when you require a freight cost, you could add more budget.
Senghor Logistics would like to remind cargo owners to prepare your shipping plans in advance. If you encounter any problems, communicate with us, pay attention to logistics information in a timely manner, and avoid risks.
Post time: Nov-14-2023
