As the peak holiday season approaches, air cargo capacity is shifting to routes between Asia, North America, and Europe, with carriers positioning themselves to capitalise on robust demand.
The build-up to the Christmas season, along with the easing of disruptions from China’s Golden Week, has led to a significant rise in cargo movements from key markets such as Shanghai and Hong Kong.
Capacity between Asia Pacific and North America has risen by 6% in recent weeks, with a 4% increase on routes to Europe. Shanghai and Hong Kong have seen double-digit percentage increases in cargo shipments to North America, driven by eCommerce, high-tech products, and perishables, particularly from the Greater Bay Area of China.
Demand for time-sensitive shipments to both Europe and the Americas has been particularly strong, and carriers expect a robust end to the year from China, Southeast Asia, and India. Hong Kong International Airport has also reported a 10% year-on-year rise in cargo volumes, driven by exports and transshipments, particularly to Europe, Southeast Asia, and the Middle East.
Despite the increase in capacity, rates have remained relatively stable. In some cases, rates out of key hubs such as Hong Kong and Shanghai have seen slight increases of between 2% and 4% over recent weeks.
Key highlights:
- Air cargo capacity from Asia Pacific to North America has increased by 6%, and to Europe by 4%.
- Carriers have reported double-digit percentage increases in cargo volumes, driven by eCommerce and electronics.
- Rates from Hong Kong and Shanghai have seen modest increases of up to 4%.
- Cargo volumes at Hong Kong International Airport grew by 10% year-on-year, with significant increases in exports to Europe, Southeast Asia, and the Middle East.
As the peak season continues, airlines are expected to maintain a close balance between capacity and demand, ensuring they can capitalise on the strong market while managing rate stability.
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