Airfreight rates showed signs of improvement in January 2020 despite the impact of the Coronavirus.
In January prices on services from Hong Kong to Europe were level with a year earlier at $2.83 per kg. This is the first time that rates on the trade lane have achieved parity with a year earlier since June 2019.
There was also an improvement on rates between Hong Kong and North America, where prices were 14.2% down year on year at $3.14 per kg. This is the narrowest year-on-year decline recorded on the trade since July 2019.
Chinese exports and cargo capacity are both down as a result of the outbreak but there is expected to eventually be a rush of demand when production returns to full capacity.
Another trend noted is a shift in demand to Shanghai for European traffic and Hong Kong for US destined volumes, as per a report.
Source : Various Agencies