Lufthansa is the first airline to increase their rate, lifting them between 5% and 10%, with even higher increases expected.
As vessels remained full through the Summer the bigger volume shippers have been channeling portions of their supply chain to air, but the emergence of an early peak season means the end to plenty of available space and rising rates, as demand rises sharply.
Our expectation had been that the market would heat up in the first two weeks of September, with an early peak likely to start in the second part of the month.
The most prudent option for shippers is to book their cargo early to avoid difficulties getting freight out of China as the peak season bites
And while it has not yet got really busy we have been commenting on social media that the most prudent option for shippers is to book their cargo early or face increasing difficulties getting freight out of China.
The Loadstar are reporting that one leading airline has already announced that net cargo rates in western Europe would rise between 5% and 10% from October 1, and even higher in other regions.
This ties in with our belief that the most challenging time period for air freight will that period from October, with delays of up to a week and tight space and while space can be found, the prices could be high.
Adding to burgeoning eCommerce demand, the new iPhone is getting ready to ship, and lots of other tech products will be seeping into the market, which will all add to a very busy air freight channel.
The jet fuel price has risen significantly in the last week, leading Emirates to announce that it is changing its fuel surcharge from next week. There is no word from other carriers at this time, but we are monitoring closely.
Emirates had been one of the first carriers to axe the fuel surcharge and move towards all-in rates, but reversed the policy in April.