Shanghai Air Cargo Rates Plummet: A Harbinger for E-Commerce Shipments
How the Recent Decline in Shanghai’s Spot Rates Signals Potential Challenges for Global E-Commerce Logistics
In February, Shanghai’s air cargo spot rates to the U.S. experienced a significant 29% month-on-month decline, settling at $3.23 per kilogram. This drop coincided with the U.S. temporarily removing the de minimis exemption on Chinese shipments, hinting at potential regulatory impacts on e-commerce air cargo volumes.
Niall van de Wouw, Xeneta’s Chief Airfreight Officer, noted that the e-commerce surge had previously congested markets in Hong Kong and southern China, leading businesses to shift operations to Shanghai despite higher costs. The recent rate decrease suggests a possible return of capacity to these regions, reflecting uncertainties in the e-commerce sector.
Overall, global air cargo demand grew by 4% year-on-year in February, marking a slowdown from the double-digit growth observed throughout 2024. This trend underscores the evolving dynamics of international trade and the potential challenges ahead for e-commerce air shipments.
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