Airfreight rates out of China are beginning to creep up and there are signs the cost to ship goods to North America and Europe could quickly escalate again as shippers flock to air transport while the supply of aircraft falls.
Export rates from China to the U.S. ticked up 3.4%, with the price from Shanghai up 4%. Outbound rates from Hong Kong to the U.S. increased 3%, and rates from Taiwan are running $2 to $3 per kilo higher than from mainland China because of very tight capacity.
Rates are expected to continue to increase slowly over the July/August period and then accelerate higher in September as several major project launches consume a vast amount of capacity. Demand for personal protective equipment and lab supplies to combat the coronavirus is also surging again. Finally, should a COVID-19 vaccine become approved for distribution in the coming months, demand for airfreight capacity is expected to increase dramatically.