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China witnesses uptick in air cargo as economic activity resumes

〖2020-9-12〗

AIR freight rates from China to Europe, the US and Japan are rising as China takes the lead in resuming production after the impact of the Covid scare, reports Japanese news website nikkei.com.

The air freight cost from Shanghai to North America were US$5.1 per kilogramme on August 17, rising 13 per cent from the low point in July, and twice the figure before the pandemic, according to TAC Index, a benchmarking tool providing market intelligence on air cargo rates.


The price to the EU also showed an increase of 10 per cent from the low point in July to $3.1 per kilogramme on August 17.


The air freight prices once rose 10 times higher, a record, than the usual after demand became tight due to the Covid outbreak, but the prices began falling since mid-May as goods stopped flowing around the world


Currently, the air freight costs from China are again going up due to the resumption of economic activity, which has created more opportunities for exports.


The goods demand related to home-office, such as personal computers, tablets and semiconductors, are shipping briskly between China and North America. The economic activity related to cars has also picked up.


The air cargo is also moving briskly between Japan and China, especially shipments to Guangzhou, with rates rising 50 per cent.


Guangzhou is one of the main production bases of the car industry. The goods flow such as electronic components are related to advanced driver assistance systems seem to be increasing between the two countries.

Some customers prefer to pay high freight charges to require shorter delivery time to ship the car parts to Guangzhou, the news website quoted the Hankyu Hanshin Express as saying.
 
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