Following what has been an unprecedented period for air freight cargo, last week produced the first signs that air freight rates from Asia to Europe may be softening.
The average rate from Asia reportedly fell slightly last week, which was the first time we have witnessed a reduction since the coronavirus outbreak started to go global.
PPE and medical supplies have dominated demand in recent weeks as the capacity continued to shrink. Airlines have had to be creative in this period and several have been converting side-lined passenger aircraft into 'cargo only' flights.
With the demand and rates being so high right now, large numbers of regular air freight movers have effectively given up on moving their products by air and turned to ocean freight instead. Shop and factory closures have in some cases enabled them to build more lead time into their product and develop more efficiencies into their supply chains.
All of this may mean that rates start to fall quickly when PPE and medical supplies start to tail off unless there is a surge in urgent retail orders when shops are allowed to reopen.
Westbound continue to offer a range of consolidation and direct air freight services to and from Asia and North America.
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