Airfreight rates originating from Asia have begun to moderate following the start of the seasonal holiday lull. Despite this weekly cooling, the market maintains a firm stance with notable year-over-year gains, signaling a more robust environment than the same period last year.
Regional Market Shifts
While the immediate post-holiday period typically sees a dip in demand, recent data shows that rates on major lanes out of East Asia remained relatively stable.
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Major Hubs: Outbound rates from primary logistics hubs showed marginal weekly fluctuations but remained significantly higher than last year’s levels, with some regions seeing double-digit annual increases.
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Southeast Asia & South Asia: Trends were mixed across the broader region. Rates from certain manufacturing centers to Europe saw modest increases, while lanes to North America experienced slight declines. Conversely, some markets in South Asia reported weekly growth despite being down compared to the previous year.
Global Performance and European Trends
The global air cargo market remains resilient, with the overall index showing a slight week-on-week gain. Interestingly, while Asia experiences a seasonal plateau, other regions are seeing renewed activity:
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Europe: Outbound rates from major European hubs have shown signs of firming, particularly on transatlantic routes and lanes heading toward the Middle East. While some specific cities saw dramatic weekly surges due to localized demand spikes, many European markets are still trailing significantly behind their previous year’s price points.
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North America: The market remained largely flat for exports to Europe and slightly lower for shipments to South America and Asia. However, certain inland hubs reported sharp weekly increases on specific lanes to Europe, even as they remain lower on an annual basis.
Summary of Market Dynamics
Outlook
The current data suggests a “soft landing” after the holiday peak. While the immediate pressure on capacity has eased, the underlying strength of the annual gains suggests that the airfreight market is operating from a higher floor than in previous years. Shippers should monitor transatlantic and Middle Eastern lanes closely, as these are currently bucking the cooling trend seen in other sectors.
