Will air freight rates from China drop also?

Will air freight rates from China drop also?

The increase in air freight rates in China comes mainly from the impact of the Corona epidemic, as well as the shortage of the supply chain, which was among the leading causes of the Russian-Ukrainian war, with many other reasons that cannot be controlled currently, and the air freight rate is expected to remain This year is higher than the level before those factors for a long time, and in the following points, we will review the other reasons that had a significant impact on the increase in air freight prices.

Reasons for high air freight rates in China:

1- The persistence of global imbalances

The escalation of global imbalances led to the closure of countries at different times, and this greatly affected the production of goods and the change in the volume of demand for them, especially with the increase in demand, with the limited ability of shipping companies to transport those requests, all of which led to a rise in air freight prices from China.

2- Christmas holidays

The period approaching Christmas is always the peak season in the transportation of goods every year from China to many countries of the world, as many people want to give gifts to their loved ones, which leads to an increased demand for many types of Chinese goods, especially just before Christmas. This coincides with the season of year-end discounts on all kinds of goods, which always results in congestion and an increase in demand for air freight, and consequently the prices of air freight from China increase.

3- Lack of containers

This situation is starting to change now, but in the past, the companies were producing more products, and there is an increasing demand to supply those products to many countries, all this has led to an increase in the demand for dealing with shipping companies to deliver those shipments. Still, the shortage of containers used in sea freight has led to the cancellation or Delaying of many shipments, which caused exporters to increasingly deal with air freight to carry out those shipments, which was one of the reasons for the increase in air freight rates from China.

4- Decreased international air capacity

The second half of the year was originally the peak season for traditional air transport, but due to the winter in the northern hemisphere, airlines canceled many fixed routes due to the weather, such as from Shanghai to Moscow, from Beijing to Cologne, and from Guangzhou to London, which caused a decrease in the number of tourists and business travelers, which made many airlines work to reduce flights to save money.

Because cargo is often transported by international air freight in the auxiliary cabins of passenger aircraft, the reduction in the numbers of air passenger aircraft has led to a significant decrease in the total capacity of air cargo, which is also why the price of air freight for Chinese export cargo begins to rise sharply Especially in September every year.

5- Limited spaces on planes

Because air carriers have limited space on planes, they can't ship everything, all this causes competition between air carriers for a small place on the plane, so those who want to send their packages must as soon as air freight is reimbursed additional fees, this led to an increase in air freight rates.

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