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Airfreight Rates from Hong Kong Surpass Last Year's Levels Amid Surging Demand

Rates for airfreight services from Hong Kong to Europe and North America have surpassed last year's levels, driven by booming e-commerce demand. In April, average all-in rates from Hong Kong to North America rose by 6.5% year-on-year to $5.54 per kg, while rates to Europe increased by 12% to $4.47 per kg. This is the first simultaneous increase since July 2022.DHL Global Forwarding noted a surge in e-commerce demand, particularly in fashion and consumer goods. Kathy Liu of Dimerco Express Group highlighted a 50% increase in air capacity demand, driven by e-commerce and e-cigarette industries in China. E-commerce giants like Temu and Shein are flying goods from production to consumers, contrasting with Amazon's use of container shipping and warehousing. Temu is exploring sea/air routes via Taiwan, Japan, and Korea to the US, leading to higher rates than from mainland China.

Asian demand increased by 13% year-on-year between April 8 and April 21, partly due to the Red Sea shipping crisis. Rates from Hong Kong and Shanghai increased by 11.8% and 12.0% year-on-year, respectively, while rates from Vietnam fell slightly and rates from India remained stable.

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