Air Cargo market shows slight improvement due to ramping up of Chinese production
More reports have emerged recently suggesting that there might be a slight improvement in the air cargo market led by the ramping up of production in China.
In its latest weekly market report, data provider TAC Index pointed out that the overall Baltic Air Freight Index covering prices by forwarders rose 3.5% in the week to March 6.
“After a prolonged period when spot prices had been falling and contracts getting renegotiated at lower levels, sources suggest the market may finally be close to reaching a bottom, with China reopening and the busy summer season coming soon,” TAC said.
The data provider had previously noted reports of spot rate and volume increases as production in China slowly ramps up again.
Elsewhere, freight forwarder Flexport also noted improvements in demand.
The forwarder said that transpacific eastbound demand from north China was continuing to increase leading to tight capacity situations.
“The main contributing factor is an increase in e-commerce demand. As a result, rates have increased this week,” Flexport said.
The company said that from south China supply is tight with demand increasing in the market, resulting in rates increasing from the week prior.
On the other hand, demand out of Taiwan, Korea and Southeast Asia remained soft.
From the Americas, demand remained steady while from Europe demand has increased with fluctuations in rates.