June Sees a 2% Rise in Rates as Markets Navigate Turbulence

As reported by WorldACD Market Data, global airfreight rates saw a slight uptick of 2% in June compared to the previous month. Though, they remain about 1% lower than the same time last year. Notably, shipments from Asia Pacific nations—excluding China—heading to the US experienced a significant increase in rates as markets adapt to fluctuating trade policies and tariffs.

The average rate for airfreight from Asia Pacific countries (excluding China and Hong Kong) to the US climbed to $5.19 per kilogram in June, marking a robust 10% rise from May and matching levels seen last year. Conversely, shipments originating from China and Hong Kong faced challenges; tonnages dropped by approximately 15% as March due to heightened tariffs, resulting in an average rate decrease to around $4.29 per kilogram—a stark contrast compared with earlier this year when it was $4.73.

Interestingly, while exports from China and Hong Kong to the US declined, those heading towards Europe surged by 15%, reaching their peak for this year in June. rates remained stable at about $3.97 per kilogram but showed a slight annual decline of 3%.

On a broader scale, total airfreight volumes globally increased by 2% compared with last June but fell short by 4% against May’s figures. Preliminary Q2 results indicate that chargeable weights rose by about 4%, both annually and quarterly—a positive sign amidst ongoing market fluctuations.

Shifting Dynamics: Asia Pacific vs US Markets

A closer look at trends reveals distinct differences between traffic patterns heading towards the US versus Europe from Asia pacific regions—especially concerning shipments out of china and Hong Kong. While early-year trends were somewhat aligned across these markets, shifting trade policies led to divergent outcomes later on; as an example, during weeks 15 through 24 this year, cargo weight moving from China/Hong Kong into the US plummeted by nearly 17%, whereas European routes enjoyed a growth of around 6%. Meanwhile, other Asian countries not including China saw their exports rise significantly toward the US.

This shift can be attributed largely to capacity reallocations away from customary routes impacted heavily by tariff changes as well as efforts made by businesses aiming to expedite deliveries before new tariff deadlines hit—one such deadline looming on July 9th when current tariff pauses are set to expire for various nations.

The Spot Rate Surge

An intriguing trend is emerging regarding spot versus contract rates within these markets; particularly notable is how spot transactions have surged dramatically within Asia Pacific-US routes—jumping up over recent months where they constituted around three-quarters of all transactions compared with just over half earlier this year or last summer’s averages.

This spike indicates growing discrepancies between contract prices—wich have risen due partly due volatility—and spot pricing that has struggled under demand pressures amid changing regulations affecting imports into america specifically targeting goods sourced from Chinese suppliers or territories like Hong Kong where exemptions are being phased out rapidly.