Rates Continue Roller Coaster Ride: Despite some let up from China last week, rates have once again surged - this time to levels beyond double digits. This week market rates out of both Hong Kong and China are in the ballpark of $11-$12 per kilogram.
Jet Fuel Cost Recovery: As of last week, rising fuel costs have now hit $1.59 per gallon, up from $0.70 compared to the same time last year. Over the past three months, cargo carriers have increased or implemented fuel surcharges, adding more costs to shippers and importers. The biggest impact is that rising fuel prices make it much less attractive to utilize passenger aircraft for the purpose of transporting freight. Without enough people onboard there is just not enough space for cargo to make it worthwhile. This would further limit capacity in the market and most probably drive costs higher than fuel surcharges would ever do themselves.
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