Air cargo volumes between China and the US began to ease back in the first full week of June after surging from mid-May.
Figures from data provider WorldACD show that in the week ending 8 June (week 23), flown chargeable weight from China and Hong Kong to the US fell 10% compared with a week earlier and is around 19% down year on year.
Spot rates on the trade, which had also surged as May progressed, were also down in week 23. WorldACD figures show that spot prices dropped 5% compared with a week earlier and are down 17% compared with last year.
WorldACD said demand from China and Hong Kong had been given a boost in May thanks to the pause of the tarrif war between China and the US.
This now appears to have eased off.
“This significant decrease in both tonnages and rates ex-CN/HK to the US followed a short recovery during the previous three weeks after the most-recent set of US import tariffs on CN/HK-made goods was paused.
“With that pause in tariffs remaining in place for now, this latest slump in the CN/HK to US market in week 23 suggests that last month’s rebound was a temporary rather than structural recovery, linked to delayed volumes ‘catching up’ following the suspension of the punishingly high tariffs that had been imposed in April.”
Source: WorldACD
WorldACD added that the decline in trade between the US and China was also a “significant factor” in the worldwide decline of tonnages by 3% week on week during week 23.
The data provider added that various holidays also played a role in the decline. Global volumes are down 2% year on year.
Volumes from China to Europe were also down, declining 5% week on week, although there was a 2% increase from Hong Kong.
“That contributed to a 4% week-on-week decrease in tonnages from Asia Pacific origins as a whole, although there was also a 6% week-on-week fall ex-Southeast Asia, largely driven by Eid Al-Adha holidays (5-8 June), especially from countries such as Malaysia (-14%) and Indonesia (-10%),” WorldACD said.
“Volumes ex-South Korea were also lower (-6%) due to the country’s Memorial Day on 6 June.”
While spot rates from China fell in week 23, overall full-market average spot and contract rates “were relatively stable in week 23” and increased by 1% to $2.44 per kg.