Air Cargo routes being changed due to falling rates
…out of the Far East, according to this article from International Freighting Weekly:
Lufthansa Cargo (LC) confirmed it had moved some capacity from China and Japan to the transatlantic for the summer season.
This was partly due to weaker market conditions from the Far East and partly because of stronger conditions on the north Atlantic.
CEO Carsten Spohr said: “Everybody was used to the fact that operating a freighter from China meant the freighter would be fully booked immediately. This is no longer true – load factors out of Asia have declined and yields continue to be under pressure.” Several carriers, including LC and Cargolux, said air export volumes from China were continuing to grow, but increases in capacity – far exceeding growth in volumes – from new and existing players had flooded the market.
One source estimated freighter capacity from China had increased by around 70% in the last 12 months.
While ad hoc rates had already dropped, rates for long-term capacity out of China and elsewhere in the Far East were “under ongoing negotiations”, said one carrier.
Cathay Pacific Cargo also blamed weakness in its key US and European markets for flat export volumes through Hong Kong, alongside more competition from mainland Chinese carriers and volumes switching from air to ocean.
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