WorldACD attributes the continued high prices compared to the same period last year mainly to strong demand and high rates in the Asian market and the Middle East. A slight price drop (-3%) could be detected by the Dutch air freight analyst when prices are compared to the last weeks of December. WorldACD attributes this mainly to seasonal effects.

In doing so, the volumes offered from Asia to Europe showed sharp fluctuations in recent weeks. For instance, the first week of January saw a drop in demand of as much as 40%, while cargo volumes already largely recovered in the second week (+26%). On the spot market, that supply yielded an average kilogram price of $4.30 in the first week of this year, while in the second week, almost $4.60 had to be paid to get air cargo from the Far East to Europe. That's 42% more than a year ago,' WorldACD said.

Asian exports to EU

If looking at specific countries, in the second week of January, kilo rates from South Korea, Japan and Hong Kong, at $5, were slightly above the average in the Asian export market to the EU. Freight routes from China to Europe lagged slightly behind at $4.48 per kilo.

Volumes and prices between the US and Asia showed a similar trend, with a decline of 24% in the first week of this year, while demand already partly recovered by 14% in the second week. In the spot market, this produced a price level 37% above that of a year ago, WorldACD said.

Source: NT