Hong Kong airfreight rates rise in September on peak demand
Average airfreight rates from Hong Kong to North America and Europe increased in September, with year-on-year gains of 31% and 8.8% respectively, driven by seasonal demand and higher jet fuel costs.
Average airfreight rates from Hong Kong to North America and Europe rose in September, continuing a year-on-year upward trend. Figures from data provider TAC Index show that rates on two key trade lanes both increased during the month as the air cargo sector progressed toward its fourth-quarter peak season.
Average rates paid by forwarders from Hong Kong to North America increased slightly to $7.02 per kg during the month compared with $6.98 per kg in August. On the Hong Kong to Europe route, prices advanced from $4.58 per kg to $4.80 per kg.
| Route | September Rate (USD/kg) | August Rate (USD/kg) |
|---|---|---|
| Hong Kong to North America | 7.02 | 6.98 |
| Hong Kong to Europe | 4.80 | 4.58 |
Year-on-year comparisons show significant gains
Compared to the same period last year, rates to North America are up 31% and to Europe up 8.8%. This significant annual increase shows the ongoing tightness in the market.
Drivers behind the rate increases
Higher jet fuel costs linked to Middle East and US-Iran conflicts, alongside strong demand from AI infrastructure and data centre volumes, are driving the increases. Rates to North America grew ahead of those to Europe as AI-related infrastructure demand has boomed to the US this year. TAC observed that the surge was not surprising given rates had been creeping up gradually through September, but noted they remain far from matching the sharp rise in jet fuel prices. TAC said: "Jet fuel prices are up more than 100% year on year."
Recent momentum and regional variations
Early October data suggest the rate climb gained momentum as the fourth quarter began and before China's Golden Week holiday, observed from 1 to 7 October. The index of outbound routes from Hong Kong last week rose 3% week on week to leave it ahead by 22.3% year on year. Outbound Shanghai gained 2.2% week on week to leave it at 18.3% year on year.
TAC described rates elsewhere out of East Asia as more varied, with week-over-week increases from Japan and Seoul but declines on Taiwan lanes. It similarly characterized Southeast Asia as mixed, with gains from Vietnam, except on Hanoi to Europe routes, and drops on Bangkok lanes. The Baltic Air Freight Index from India was also falling back slightly over the week, though overall rates from India were a little higher again.
Meanwhile, volumes from Asia to Europe have come under pressure due to the European Union’s introduction of a charge of €3 per package for shipments valued at less than €150, targeting e-commerce. These gains mirror the onset of a seasonal demand build as businesses begin restocking inventories. The global Baltic Air Freight Index rose 5% over seven days through October 5, reaching 25.5% above its level from 12 months prior.
