Airfreight rates out of Asia continue to surge. Forwarders and data providers expect record-high prices by the end of November. According to recent data from WorldACD, global air cargo spot rates rose 5% in late October. The Asia Pacific origin saw a 3% increase. Europe experienced a 7% increase, and Central and South America saw an 8% increase. Despite these hikes, industry experts don’t predict an extreme peak season. The market shows signs of maturing in managing demand surges.

Rates were climbing weekly, reported a Shanghai-based forwarder. Asia-Europe freight costs are expected to reach $7 per kg by the month’s end. This increase is driven largely by e-commerce shipments, which constitute 55% of volumes. Cathay Cargo oversees a significant volume of freight from China. They noted that pre-arranged freighter charters by e-commerce giants mitigated demand spikes ahead of Golden Week. As a result, Asia Pacific’s rates rose 27% year-on-year, while Middle East and South Asia experienced a 78% increase.

The market remains orderly, despite high rates. Xeneta’s Niall van de Wouw highlighted the sector’s growing ability to handle demand shifts. The evolving balance in air cargo shows an increased understanding between shippers, forwarders, and airlines. They are focusing on establishing stable rates. These rates should be reasonable and help all stakeholders.

Key Data Summary

The ongoing increase in airfreight rates reflects robust demand, especially in e-commerce. Still, effective planning and agreements in advance have alleviated dramatic price hikes. This is particularly true among larger e-commerce players. They have stabilized rates in a peak period that could have seen much higher volatility.