Asia Pacific to Europe airfreight rates climb despite volume decline

Dhaka: Airfreight rates from the Asia Pacific region to Europe climbed last week even as cargo volumes came under pressure following a new European Union levy on e-commerce shipments, according to data provider WorldACD.

Spot rates from Asia Pacific to Europe rose 1% week-on-week during the week ending August 9, driven by a 6% jump from China and a 3% rise from Hong Kong, the region's two leading e-commerce hubs.

The gains from China and Hong Kong offset declines elsewhere in the region, led by South Korea (-6%), Singapore (-5%), Taiwan (-4%), and Japan (-4%).

The uptick in China and Hong Kong rates came despite Typhoon Dolphin disrupting operations, triggering evacuations in Shanghai and Beijing and more than 1,000 flight cancellations in Shanghai alone.

Demand was further dented by the fading effects of the European Union's decision to end its "de minimis" exemption for e-commerce imports, WorldACD said.

The EU introduced a EUR 3 charge at the start of July on packages valued under EUR 150, which had previously entered duty-free.

Consequently, e-commerce volumes from China to Europe dropped 8% year-on-year, while Hong Kong to Europe volumes plunged 29% in the week under review.

WorldACD attributed the rate increase from China and Hong Kong to capacity adjustments amid weakening demand.

The data provider noted that freighter capacity once used for e-commerce shipments to Europe appears to have shifted toward the transpacific sector, pointing to rising Europe-bound pricing alongside falling transpacific rates as evidence of the trend.

Beyond China and Hong Kong, overall demand from Asia to Europe fell 4% week-on-week. Indonesia recorded the steepest decline in chargeable weight at 18%, followed by Taiwan at 14% and Malaysia at 12%.

Japan bucked the regional trend, posting a 3% increase during the same period.