Significant Sinking of Asia-EU Air Freight Rates
Due to slow production, overcapacity and low demand, air freight rates have sunk to a low level.
The value of Chinese exports fell with 25.4% in February, which is the sharpest fall since May 2009. Although the market out of mainland China is expected to slowly recover, the rates of Hong Kong do not show progress.
Air freight’s unique selling point is undermined as it usually relies on the latest consumer trends for high value items or supply chain disruption. Due to an oversupply of belly cargo and the use of the spot market, capacity cannot be restricted by airlines as they could do before.