China Freight Forwarding Services
Air & Sea Freight Between China And The UK

Air cargo wins reprieve as Singapore delays SAF levy

Airfreight stakeholders have responded positively to the decision of Singapore's government to delay the implementation of a new green levy for cargo as the industry wrestles with the practicalities of meeting its environmental pledges. In a statement issued this morning (3 September) the Civil Aviation Authority of Singapore said it will "defer the implementation of the levy for air cargo shipments by one year to apply to services sold from 1 October 2027 for flights departing Singapore from 1 January 2028". Director-general of CAAS, Han Kok Juan, added: "CAAS has worked closely with airlines and other global industry partners to set up a robust regime for levy collection, procurement and environmental attributes management. "In doing so, CAAS seeks to lay the foundation for Singapore to serve as a trusted hub for SAF-related economic activities in the region," Mr Han added, with the aviation authority noting that it was still rolling out its planned levy for passenger services. Explaining its reasoning, CAAS noted that compared with passenger operations, cargo services involve a broader range of stakeholders - notably carriers, express operators, forwarders, and shippers - all operating under "varying commercial arrangements". Following industry engagement, it agreed rolling out the levy from the start of next month for flights departing 1 January 2027 would prove problematic and as such said that it had agreed "to work with industry to develop and implement a robust SAF Levy collection mechanism". Unsurprisingly, industry has responded positively, stakeholders telling The Loadstar a delay was necessary, with chair of Singaporean air cargo agents association SAAA@Singapore, Gabriel Lam noting a "one size fits all" approach for passenger and cargo did not make sense. Mr Lam told local outlets that moving ahead without adapting the system for collecting levies for the more diffuse make-up of the airfreight sector would lead to inconsistencies leading to unsustainable cost price spikes. He added that the additional lead time would allow companies to not only better plan for the levy's implementation but to make clear to their customers what the additional costs would be and when they would be due, offering a "more measured and sustainable" transition. A spokesperson for Kuehne+Nagel responded to a request for comment from The Loadstar by saying that the company "supports mandates that help drive greater adoption of SAF and provide producers with the confidence to invest in additional production capacity". While not responding directly to questions about the decision of the Singaporean regulator to delay its own levy's introduction, the spokesperson noted that these mandates were being introduced "at different speeds and through different mechanisms". Another source working in the field told The Loadstar that they would not comment publicly - "and I am not surprised others haven't" - because they said the issue of SAF and levies "is, to some extent, a contentious one, but they should be supported".

Asia-Europe air freighter capacity inceases, despite ecommerce slump

Freighter capacity from Asia Pacific to Europe has increased sharply since the EU introduced its new low-value import rules, despite a steep fall in Chinese ecommerce traffic into the region. Rotate data show dedicated freighter capacity from Asia Pacific to Europe 18% higher in the week of 17-23 August than 22-28 June, the final full week before the new rules took effect on 1 July. That compares with an increase of just 2% in global freighter capacity over the same period. Capacity in the opposite Europe-Asia direction increased 13%, while Europe-Middle East freighter capacity rose 15%. The expansion comes despite a dramatic deterioration in one of the market's most important sources of demand. Latest WorldACD figures show Hong Kong-Europe tonnage 33% below last year's level in the week ending 23 August, while mainland China-Europe traffic was down 8%. There are, however, signs that the decline may finally be finding a floor. Combined mainland China and Hong Kong-Europe tonnage edged up 1% week on week, its first weekly increase since early June. WorldACD said the increase "could signal a bottoming-out of that downward trend and a potential stabilisation of volumes at a new lower level, supported by rebounding post-summer demand". But the capacity figures suggest carriers have not responded to the ecommerce downturn simply by removing freighters from the wider Asia-Europe market. Instead, the network is being reshaped. Among the largest changes recorded by Rotate is Hong Kong-Budapest, which gained around 1,100 tonnes of weekly freighter capacity between late June and late August, an increase of 321%. Amsterdam-Shanghai gained around 837 tonnes, or 59%, while Shanghai-Amsterdam increased around 660 tonnes, or 44%. But there were significant reductions elsewhere: Hong Kong-Frankfurt lost around 503 tonnes of weekly capacity, disappearing entirely from the comparison; while Luxembourg-Hong Kong capacity declined around 505 tonnes, or 36%. IATA's July figures also point to significant changes in the composition of the air cargo market. Dedicated freighter traffic globally increased 13.9% YoY, its third consecutive month of double-digit growth and strongest increase in more than five years, while bellyhold traffic fell 7%. Europe-Asia, however, bucked that trend: dedicated freighter traffic on the corridor contracted 1.3% YoY, while bellyhold traffic increased 9%. Asia-North America freighter demand, by comparison, increased 12.2%. The latest WorldACD figures suggest the geographical divergence in demand is continuing. Mainland China-US volumes remained 11% above last year in Week 34 and Hong Kong-US traffic was 9% higher, despite China/Hong Kong-Europe remaining substantially below 2025 levels. Rates on China-Europe, meanwhile, appear to have found firmer ground, according to WorldACD. Spot prices fell for six consecutive weeks, from $5.43 per kg in Week 25 to $3.79 in Week 31, a decline of some 30%. But they have since risen for three consecutive weeks, reaching $4.14 in Week 34, 13% higher than a year earlier. Hong Kong-Europe rates have been less resilient, standing at $4.91 per kg in Week 34, just 5% above last year. And demand elsewhere in Asia may help explain why capacity continues to be added to the broader Asia-Europe market. Average Asia Pacific-Europe spot rates were 15% higher YoY, with South Korea and Taiwan both up 25%, Thailand +32% and Malaysia +42%. The capacity reshuffle is occurring against a constrained longer-term supply picture. Trade & Transport Group estimates the global large-widebody freighter fleet can grow by only around 2% annually over the next five years, from about 717 aircraft at the end of 2025 to just under 800 in 2030. That leaves the market increasingly reliant on moving existing freighter capacity to where it can earn the best return.

Capacity fears as US drayage rates are buoyed by converging trends

Concerns are rising in the US about drayage capacity and pricing, as a convergence of factors is producing signs of mounting strain. The situation has come to the fore in recent earnings calls of trucking and intermodal service providers. Jim filter, president and CEO of Schneider, claimed drayage was the "primary constraint" to pursuing opportunities of over-the-road conversions. "We elected not to chase growth that would have required expensive third-party dray when pricing was not yet supportive of the incremental cost," he said. And Brad Stewart, treasurer and SVP of investor relations at Knight-Swift, said: "While outside drayage service is affected by the constrained driver market, we outsource only a low single-digit percentage of our drayage needs, which should provide some insulation from the tightening in drayage capacity." The National Drayage Spot Market Index is 8.2% up year on year, and is expected to remain elevated this month, amid warnings of continued pressure on equipment availability, driver capacity, terminal turn times, and appointment flexibility. One factor in the equation is the peak season, which manifested itself in container dwell rates at the port complex of Los Angeles and Long Beach rising in August to their highest level in over 15 months. Brian Kobza, CCO of drayage and landside logistics provider IMC Logistics, which has stations at all major intermodal points in the US, described this year's peak as "plateaued" - more extended with less of a pronounced spike, which kicked off earlier than usual and is still going on. Some predictions see it running as far as China's Golden Week in early October. This year, volumes have received an additional boost from industrial traffic - largely AI-related shipments of hardware and materials for data centres, plus power equipment to meet the voracious need for electricity, noted Paul Brashier, VP of global supply chain at ITS Logistics. This has added to the number of ports that are dealing with elevated import volumes. Mr Brashier named Houston as a "big pain point". "The amount of freight we're moving from the port of Houston is phenomenal - retail, industrial, energy, projects," he said. Mr Kobza named a number of locations where he saw signs of congestion and elevated dwell times, including Chicago and Memphis (two notorious bottlenecks for rail freight), as well as Atlanta, Jacksonville, and Savannah. And traffic at Dallas/Fort Worth has been the busiest in years, according to Mr Brashier. However, at this point the stress points are relatively manageable, Mr Kobza said. "We're seeing stresses in supply chains, warning signs that it could get worse," he added. Dwell times for import containers waiting at ports for inland transport have climbed to 6-7 days on average, but at some terminals they are up to 14 days, he said. Strain on the network has been increased by more domestic intermodal traffic, a result of the rise in truckload pricing and the shrinkage of trucking capacity, precipitated by the federal government's clampdown on non-domiciled drivers and truckers with insufficient command of English, which is decimating the driver pool. This is exacerbating the situation in the drayage market, as some drivers have shifted to the truckload sector, Mr Kobza noted. Mr Brashier suggested this was not a novel phenomenon. Traditionally, peak seasons have caused some driver shifts from drayage to truckload, but this did not play out in recent years when trucking rates were depressed because of overcapacity and sluggish demand, he said. One additional factor that could impact the situation is the low water level of the Panama Canal which has triggered restrictions in daily transits, threatening backlogs on its west side, Mr Kobza noted. "The canal has the potential to become a larger issue, but at this point it's just another delay in the overall supply chain," he commented. He advises cargo owners to "build some float" into their supply chain schedules, to diversify their supplier base as much as possible, and to do due diligence on their drayage and landside providers. "Make sure you have emergency plans for access to dray capacity - and keep an eye on Houston," Mr Brashier said.