As factories reopen and goods begin to move again, freight prices in are rising as reported by The Loadstar.
Restarting factories
One local forwarder said, “Factories are restarting bunch by bunch, with approval, in the districts near Shanghai.”
One of the challenges has been haulage, but truck capacity is beginning to return as well, he added.
“It’s possible to find more hauliers with a licence, but it is taking longer and prices are more expensive.”
According to the TAC Index, air freight rates from China to Europe, as of May 16, are flatlining following a steep fall since the end of April, at about $6.80 per kg.
The forwarder said about 80% of freighter flights were back in Shanghai and the rise in freighter capacity helped soften the “challenging” import market.
Quite subdued
The port, meanwhile, is operating at about 90% capacity.
“It is not yet congested, but we expect it will be shortly.”
Meanwhile, in Singapore, rising passenger numbers have reduced belly capacity as baggage has increased, said one local forwarder, who added: “However the levels are still not at pre-Covid levels, so airlines are not increasing the frequency of flights.”
Sea-air, which has had something of a reboot during some of the most challenging periods of the past two years, is “quite subdued”, he added, with Shanghai lockdowns decreasing demand.
“We hope there is a rebound once Shanghai is open again and are certain that later this year there will be an increase in demand for air cargo space again.”
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Source: The Loadstar
