Air‑cargo and freight costs up
Air-cargo insurance is getting pricier and capacity is slightly tighter at the same time, pushing replacement shipments to cost more; average global air-cargo rates rose 2% week-on-week to $2.54/kg while reported capacity sits about 1% below expectations. (stattimes.com), (aircargoweek.com). Global freight markets are also feeling fuel and capacity pressure, with carriers and shippers reporting tighter conditions that lift landed costs and surcharges. (freshplaza.com), (blog.wego.com).
Air-cargo prices are rising again, and shippers are paying more to move urgent goods as space tightens and fuel costs stay high. (stattimes.com) WorldACD data for week 14, covering March 30 to April 5, showed global airfreight volumes fell 4% from the previous week, but average rates still climbed 2% to $2.54 per kilogram. The Easter holiday slowed traffic, yet pricing kept moving up. (stattimes.com) Capacity has tightened at the same time. Air Cargo Week, citing Xeneta, reported global air-cargo capacity running about 1% below expectations as disruption in the Middle East delayed a fuller recovery in available lift. (aircargoweek.com) That combination hits replacement shipments first. When a manufacturer, retailer, or insurer needs to move parts or products quickly after a delay or loss, they often switch to air freight, and those last-minute bookings cost more when rates rise and space is limited. (freshplaza.com) The pressure is not limited to aircraft. Drewry’s World Container Index rose 1% to $2,309 per 40-foot container on April 9, driven mainly by higher rates on transpacific and transatlantic routes. (drewry.co.uk) Fuel is feeding the increase across transport modes. Supply Chain Dive, citing Xeneta, reported that the closure of the Strait of Hormuz was pushing up oil costs and had nearly doubled the cost of jet fuel since late March, squeezing carriers already dealing with network and capacity pressure. (supplychaindive.com) Air-cargo pricing had already been firm before this latest move. Xeneta said the average global air-cargo spot rate in March was $2.86 per kilogram, up 14% from a year earlier, as annual contract talks took place in a more volatile market. (supplychaindive.com) Some carriers are already passing fuel costs straight to customers. Caribbean Airlines said tickets issued on or after April 10 carry a fuel surcharge of $15 to $25 per sector on regional and international routes, while tickets bought earlier are exempt. (jamaica-gleaner.com) For importers, exporters, and insurers, the result is a higher landed cost: the product price plus transport, fuel surcharges, and other fees needed to get goods to the buyer. If fuel stays elevated and capacity recovery remains uneven, those extra shipping costs are likely to remain built into urgent freight moves. (freshplaza.com)
