Air cargo business remains strong on continued high rates
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According to sources on Sunday, the average freight rate per kilogram on the Hong Kong to North America route, as measured by the TAC Index, the leading price reporting agency for the sector, recorded $7.1 in December 2023.
This figure surpasses the records of January ($6.14) and November ($6.15) of the same year, marking the peak for the year.
The air cargo rates on this route slumped to a yearly low of $4.69 per kilogram in July last year but have steadily risen for five consecutive months since August. Although these rates have not reached the heights seen in 2021 when air cargo rates peaked, they have managed to sustain levels formed during the pandemic period.
The highest-ever rates on the Hong Kong to North America route over the past decade were reached in December 2021 when the average rate soared to $12.72 per kilogram.
Comparatively, December’s rates last year plunged by nearly 44 percent. However, this rate is not significantly different from the average rate of $7.5 per kilogram recorded in December 2020 and is even higher than the figures at the end of 2022 ($6.5).
Considering that the average freight rate for the Hong Kong to North America route was $3.62 per kilogram in December 2019, the current rates are nearly double, showing fluctuations within the range established after the pandemic.
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