Rates Plummet Post-CNY: Airfreight market rates have dropped nearly $3.00/kg following the Chinese New Year holiday. Costs from China to the USA are between $5-$6/kg, while rates from Hong Kong are hovering just above the $6.00 mark. Though the market has eased, capacity issues remain. This is especially true out of Hong Kong where new quarantine restrictions have gone into effect resulting in flight cancelations.
Widespread Export Backlogs: Adverse weather across the U.S. over the past month has had a crippling effect on air export operations. Over the past several weeks, many airlines did not have a first available flight option until the 1st or 2nd week of March. Some airlines are still not accepting any bookings until the backlogs are resolved. Cargo destined for Asia has been particularly hit hard as airlines deal with not only weather-created backlogs but also the backlog of shipments that were on hold until post CNY.
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