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Asia Pacific to Europe airfreight rates rise despite volume pressure

Airfreight rates from the Asia Pacific region to Europe were on the rise last week despite volumes coming under pressure due to the new European Union charge for e-commerce shipments. Figures from data provider WorldACD show that spot rates from Asia Pacific to Europe increased by 1% week on week during the week ending 9 August (week 32), led by a 6% increase from China and a 3% increase from Hong Kong - two e-commerce powerhouses. This increase from China and Hong Kong compensated for declines from elsewhere in the region, led by South Korea (-6%), Singapore (-5%), Taiwan (-4%) and Japan (-4%). The increase China/Hong Kong to Europe spot rates came despite volumes being affected by Typhoon Dolphin, which caused evacuations in Shanghai as well as Beijing and over 1,000 flight cancellations in Shanghai alone. Demand was also impacted by "the lingering repercussions of the end of the 'de minimis' exemption for e-commerce entering the European Union (EU)", WorldACD said. At the start of July, the EU introduced a €3 charge for packages valued at under €150 that previously were not required to pay any duties. As a result, e-commerce volumes from China to Europe decreased by 8% year on year and by 29% from Hong Kong to Europe in week 32. WorldACD reasoned that with demand coming under pressure, the increase in spot rates from China and Hong Kong to Europe is linked to capacity adjustments. "The rise of Europe-bound pricing out of Hong Kong and China despite the end of the European de minimis exemption and the decline of transpacific rates out of Asia Pacific suggest that freighter capacity previously deployed for e-commerce transport to Europe has shifted elsewhere, with the transpacific sector the obvious target." Elsewhere out of Asia, demand to Europe declined by 4% week on week, with chargeable weight from Indonesia falling 18%, followed by a drop from Taiwan of 14% and a 12% drop off from Malaysia. On the other hand, there was a 3% increase between Japan and Europe.

Xeneta chief takes aim at ocean carriers over treatment of shippers

Ocean shipping lines are taking advantage of shippers by pushing through rate increases which run counter to prevailing market fundamentals, according to one leading maritime trade commentator. Peter Sand, chief analyst at Xeneta, took the Europe-US trade as an example - commonly perceived as a stable and predictable market, especially in these turbulent times for ocean shipping. As geopolitical events have triggered uncertainty and volatility on other major lanes, the transatlantic has navigated much calmer seas. However, the first half of the year has been marked by a sharp rises in rates, in contrast to far less movement in demand and capacity, Mr Sand underlined. "The North Europe-US East Coast is a specialised and sizeable trade, benefiting from a broad mix of industrial goods. And yet this pocket of stability has also experienced turbulence in freight rates since 1 April, he told The Loadstar. Data from Xeneta shows spot rates on the North Europe to US East Coast trade rose 86% between the end of February when the Gulf crisis began and last week, a hefty increase, albeit significantly smaller than those recorded on other major trades such as Far East-US and Far East-Europe. Long term rates on the North Europe to US East Coast over the same period rose 53% to $2,123 per 40ft. "For transatlantic spot rates, it seems to have been a case of carriers successfully spooking shippers back in January that capacity was tight and space not readily available. This may have been true for a few weeks, but certainly not since then." Xeneta's data on carriers' deployed capacity on the transatlantic in the first half of the year reveals a 4.7% decrease year on year (YoY). "The deepest cut came in January (-10.7%), before more capacity was added in March (+4.1%). During the same period, demand between the EU and US was flat, YoY (-0.7%). He went to stress that the "global ripple effects" from tariffs to fuel, had been keenly felt by shippers, including those active on the transatlantic trade. Turning to the outlook for the transatlantic in the coming months, Mr Sand noted that Xeneta's expectations for the trade, in terms of demand and supply, was for more of the same: both declining on a YoY basis. "As for short-term and long-term rates, they should soon start to drop and continue falling as we approach year-end."

Zim chiefs upbeat as 'solid' Q2 takes edge off disappointing first half

Amid its struggle to get regulatory buy-in for its $4.5bn sale to Hapag-Lloyd, while Zim's Q2 numbers were healthy, they were insufficient to wipe out a difficult first quarter that leaves its year-to-date performance well down on 2025. Revenue fell substantively, 12.6% year on year, to $3.18bn over the six months to July, and the Israeli carrier saw a 2.7% drop in volumes and an average freight rate of $1,455 per teu, down 10.8% year on year. Second-quarter revenue was easier reading, the carrier posting near-9% year-on-year growth to hit $1.78bn, with average freight rates jumping 7.5% on Q225, reaching $1,590 per teu. Although Zim saw volumes increase over the three months to July, hitting 922,000 teu, it is worth noting that this represented a growth rate of just 3%, well short of the 5% average for the industry. But CFO Sami Jubran was keen to stress the positive, describing Q2's results as "solid", adding that the team was now expecting a "significantly stronger performance during the remainder of the year, as reflected in our guidance" - put at $2.4bn for Ebitda. Recently installed CEO Chen Lichtenstein said his focus was to "capitalise fully on current market opportunities while deploying the company's resources with discipline and efficiency". He added: "We remain committed to preserving the agility that allows us to respond quickly to changing market conditions, strengthening our competitiveness, and creating sustainable value." Given the looming tie-up with Hapag-Lloyd, Zim declined to participate in an investor call and continued its recent approach of not offering either the CFO or CEO up for questions from the media. The earnings statement did, however, comment on the state of that deal, albeit without saying much beyond noting that until regulators agree to the deal - or disagree as the case may be - Hapag-Lloyd and Zim will continue to operate separately.