Air freight Outlook
- Due to freighter cancellations at the end of April and early May, overall air cargo capacity has decreased compared to the same period last year. As a result, air freight rates between China and the U.S. are expected to gradually rise.
- Intra-Asia traffic remains strong, particularly from China to Vietnam, Singapore, Thailand, Malaysia, and Taiwan. Notably, Chinese carriers such as China Southern (CZ), Air China (CA), and China Eastern (MU) have introduced an air-air solution—offering freighter services from Hanoi (HAN) to China, then connecting onward to the U.S. This service is expected to ease pressure on Vietnam–U.S. outbound capacity during the upcoming peak season.
Ocean Freight Outlook
- According to Drewry’s latest Cancelled Sailings Tracker, 8% of scheduled sailings on major East-West trade lanes were cancelled in May—58 out of 692 sailings. The most impacted route was the Trans-Pacific Eastbound (TPEB), which accounted for 62% of the cancellations.
- While many carriers have postponed their Peak Season Surcharges (PSS) from mid-May to June 1, they are now expected to apply two separate PSS increases on top of existing long-term fixed rates: USD 2,000 per FEU effective June 1, and USD 4,000 per FEU effective June 15. Spot FAK rates are expected to be even more volatile, potentially rising to USD 6,000 per FEU in the first half of June and up to USD 8,000 per FEU in the second half.
With only a 90-day window to ship, exporters from China are under pressure, dealing with limited equipment, frequent rollovers, and escalating freight costs.
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Since May 12, we have observed an increase in orders from U.S. customers. However, most shipments are currently being booked via ocean freight. We anticipate that air freight demand will begin to pick up from mid-June.
VP, Global Sales and Marketing, Dimerco Express Group