Air Freight Market Update

East Asia-U.S. spot air freight rate at 2-yr low: Xeneta

• The spot air freight rate from East Asia to the U.S. in early December hit a two-year low, down - 46% from the peak in the week ending on December 26 last year but remained 101% above the same period in 2019. The air cargo volume from East Asia to the U.S. has been trending downward since Q2 this year with volume in the first ten months down -9% YoY compared to the air cargo peak year of 2021.

• From East Asia to Europe, the spot air freight rate stood at the level last seen by the end of September 2021. It declined -31% from its peak in the beginning of this year and remained double compared to the 2019 price over the same week.

• IATA predicted the air cargo volume will drop by a further 4% next year, while yields and revenues are also expected to weaken compared with this year’s levels.

Changes in Spot Air Freight Rates and Volume on East Asia to the U.S. Corridor

Changes in Spot Air Freight Rates and Volume on East Asia to Europe Corridor

Ocean Freight Market Update

Xeneta container rates alert: calm before storm, as long-term ocean freight rates hold steady ahead of expected new year pain

• The year ended in somewhat anti-climactic fashion for long-term ocean freight rates, with the latest data from Xeneta shows a decline of just 0.1%. Following on from a steep 5.7% month-on-month fall in November, the development is a largely positive one for ocean carriers. However, Xeneta warns, far worse is set to come in 2023.

• Xeneta CEO stated, “At first glance, this month’s data appears to stall the negative curve, but this is a little misleading.” It is due to fewer long-term contracts being signed at this time. When more long-term contracts expire in the new year and being signed with the rate below the current average, storm would come.

• In regional terms, the data showed a mixed bag of rising and falling data indices. Europe experienced relatively small falls in both import and export rates benchmarks, with the former declining by 1.4%. However, lower volumes throughout the year suggest further falls may lie ahead. Far East imports on the moved up in December, posting a m-o-m growth of 2.3%. However, the Far East exports sub-index fell away for the fifth consecutive month. The news in the US was more positive, with the import sub-index climbing by 1.4% and the export benchmark recording this month’s largest rise of 2.7%.

The reefer spot freight rate from North Europe to China has been stable during the Covid years. Xeneta data alerted that change may soon be coming around.