The international data provider, TAC, highlighted the recent air cargo growth figures in its latest weekly report. As per the organisation, the Baltic Air Freight Index, which records freight forwarder prices, rose slightly by 3.5 per cent in the week ending March 6th.
Sources suggest that the rise occurred after Chinese markets reopened and increased production just ahead of the busy summer season. It gives a breather to the market players who battled falling prices and renegotiated contracts at lower rates pushing the market dynamics to its lowest point.
A similar effect was witnessed by TAC when spot rates and volumes jumped the last time China ramped up its production. Moreover, the transpacific eastbound traffic from north China continued to rise, thus causing a strained capacity. The main reason is believed to be a hike in eCommerce demand leading to increased rates.
The supply from South China is still tight, while increased demand is causing rates to surge. At the same time, the demand from Korea, Taiwan, and Southeast Asia remained soft. The American region has experienced steady demand, while Europe has witnessed demand surges with an equal rate increase.
