Air freight rates are going to rise!
Edgy air cargo market could see 'a crazy' peak season rates boom Air freight rates may have edged up in the past month – but forwarders are reporting that falls in capacity due to cancelled flights, combined with vast amounts of distressed sea freight, could see a “crazy” market next month. “We cautioned last month that a cooling in rates was likely to be short-lived and, as we see a re-acceleration, particularly on US-bound routes, that may turn out to be the case,” Bruce Chan, of Stifel, told the Baltic Exchange. …… And, he said: “Retail inventory to sales ratios are still near record lows.” Finally, he argued: “ As high as air freight rates are right now, with detention and demurrage and the risk of stock out, the traditional gap between fully loaded ocean costs and air freight rates may have actually narrowed. ” …… “I have not seen much sea freight converting to air recently, but I’ve heard that some traditional retail cargo might need air freight from late August ,” sai...