Air Freight Rates Rise as Ocean Freight Volumes Decline

As we enter the second week of September, we are approaching China’s Golden Week holiday, which begins on October 1. In previous years, we typically saw an increase in seaborne imports ahead of this holiday. However, this year, the industry has faced several challenges, leading to changes in usual patterns.

Since the initial attacks by Houthi rebels around the Red Sea at the end of last year, shipping companies have been forced to alter their routes to and from the Far East and the Indian Subcontinent. Instead of passing through the Suez Canal, ships are now navigating via the Cape of Good Hope. This detour adds approximately 10-12 days to the journey (one way), resulting in longer transit times, congestion at transshipment ports, and increased costs. These changes have quickly become part of the “new normal” for all of us.

Due to these circumstances, many importers have chosen to book their sea freight earlier than usual, creating an unexpected peak in June and July, which typically occurs in August/September. This shift in purchasing behavior has led to a decrease in demand in recent weeks, pushing down prices and prompting shipping companies to announce “technical blank sailings” for the near future. The familiar patterns of previous years have blurred, once again highlighting the industry’s unpredictable nature.

Air Imports Enter Peak Season

With the drop in demand for sea freight, we are now witnessing a significant increase in air imports from Asia. Many shippers are rushing to move their goods before Golden Week, leading to a sharp rise in demand over the past week. In response, airlines have announced price increases and are working to add capacity to meet the urgent need.

At C Land, we are ready to help you navigate these changes in the global market. Through our personal commitment, we aim to provide solutions tailored to your needs, ensuring your logistics operations remain successful.

If you have any further questions, please feel free to contact us!

Sincerely,
C Land Logistics