Shanghai airfreight rates improve as cargo switches from Hong Kong
The price of air cargo out of Shanghai airport has begun to improve over recent weeks as cargo volumes have shifted from Hong Kong to the Chinese hub.
The latest figures from Tac Index show that prices from Shanghai to Europe last week increased by 4.7% compared with a week ago to $2.43 per kg, while prices to the US were up by 4% to $3.13 per kg.
Conversely, prices from Hong Kong to Europe slipped by 1.5% week on week to $2.55 per kg, and from Hong Kong to the US they were down 1.5% to $3.37 per kg.
In a weekly market update, Peter Stallion of derivatives broker Freight Investor Services (FIS) said: “The big news is the clear transfer of cargo volumes out from Hong Kong through to Shanghai and Greater China. Beleaguered by continuous political strife, shrinking volumes, trade wars and overcapacity, rates out from Hong Kong continue to drop.
“Conversely Shanghai lanes resemble a slow but stable climb out from slack season. Although positive for the market, the shift of volumes presents significant volatility that can be hedged. Shanghai to Europe has jumped 4.74% in the past week.”
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