Asia air freight rates have been on the rise recently and an ocean freight GRI is now looming for May 1st.
Air Freight
The recent geopolitical tension in the Middle East, specifically the missile and drone attack on Israel last week, has had an impact on air freight capacity and rates to/from the Middle and Far East.
Immediately following the strikes, several Middle Eastern flights and services were cancelled and many Far East services have been routed away from the perceived danger area.
Capacity has been impacted and we have seen air freight rates spiral on many Asia services.
Ocean Freight
Ocean freight carriers have announced plans for a General Rate Increase (GRI) for Asia imports from 1st May 2024. The exact levels of the GRI will vary by route and by carrier, although the numbers currently being proposed suggest this could be a significant increase.
Ultimately, market conditions determine whether a GRI is successfully implemented and as we have seen many times in the past GRI plans can be adjusted, or even scrapped, right up until the last minute.
However, the uncertainty in the Middle East, and the recent seizure of the MSC Aries by Iran, have increased the volatility of the market. Therefore, our suggestion at this stage is to be prepared for an increase.
