With less than two weeks left until the Chinese New Year shuts down logistics operations across the world’s largest cargo market, online freight platform Freightos is warning shippers to move quickly or risk costly delays.
“International freight movements out of China will be disrupted for a good 3-4 days each side of February 16,” Freightos said.
Shippers rushing to avoid the shutdown are pushing up demand and pricing, Freightos said. “As part of this buildup, air- and ocean-freight movements out of China are facing squeezes in demand and tight capacities, raising prices at least until backlogs are cleared post-holiday.”
Airfreight prices from China have been rising over recent weeks, following an early January dip, but Manel Galindo, CEO of freight and web cargo for Freightos, warned that there could be instability ahead.
“Prices are still changing rapidly – and not just the market rates. Carriers of all sizes have been offering off-peak promotions for years now, to get more cargo in their planes. This year’s run-up to Chinese New Year is a new exception, with none of the larger airlines currently are offering promotions.”
Two weeks ago, China-U.S. prices were around normal non-peak rates (US$2.50-3.00 per kilogram), before rising to $2.65-3.00/kg. last week, and then to $3.20 to 5.00 /kg. this week. China-Europe are in a similar range, up from $2.20-3.50/kg. two weeks ago, Freightos said.
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