Rise in China/Europe air freight costs

The news suggests that rail services are not eating into air freight revenues as much as had been feared. Photo credit – Pixabay

Rise in China/Europe air freight costs

There’s been an increase in the average cost of transporting goods to and from China and Europe via air.

That’s according to specialist publication Air Cargo News, which reports that:

…the sector is making paper deals with an average value of $2.85 per kg on China-Europe services, up from the $2.75 per kg average for July… This average for September stands at $3.05 per kg and $3.70 per kg for the fourth quarter.

The news suggests that the growing number of rail services between China and Europe are not eating into air freight revenues as much as analysts had feared.

In April, we reported that air freight companies had raised concerns about the impact that these new services were having on their businesses.

These concerns have now resurfaced in the light of reports that some of the rail links between China and Europe are not yet running at full capacity.

That means that excess capacity on the rail routes could potentially be sold to hauliers at a reduced price, which in the short term could further undercut the airlines.

Rupert Reid

Pilot and Senior Broadcast Journalist at Panda Radio. You can find him on Twitter @rupertreid