Asian-based airlines are raising freight rates as increasing demand for electronic goods starts outstripping capacity reduced after last year's terrorist attacks.
"August volume was very similar to the same period in 2001, it's just that capacity is curtailed," said Mark Noske, Singapore-based operation manager at Emery Worldwide, a freight unit of California-based CNF Inc. Some customers requiring express shipments are having to pay as much as 59 percent more than standard charges, he said.
Last year's terrorist attacks and the economic slowdown in the US prompted Asian airlines to cut flights on trans-Pacific and European routes as demand slumped. Freight forwarders say airlines may secure further increases in charges in the run-up to the Christmas shopping season, helping carriers generate more profit from their cargo operations.
"Demand [for cargo shipments] is definitely increasing and airlines are doing their best to hike prices," said Hardy Haenisch, Hong Kong-based director of On Time Express Ltd. Freight rates to the US may rise as much as 15 percent in October and November, from the current rate of between US$2.80 and US$3.00 per kg, Haenisch said.
Korean Air, the world's fourth-biggest cargo airline, said it filled 78 percent of its cargo space last month, compared with 73.8 percent a year earlier, according to preliminary figures. Korean Air said capacity increased by about 1.9 percent, and shipments rose 8.3 percent to 106,900 tonnes.
"We expect cargo usage to increase in months to come as the peak season starts in September and lasts until November," said William Han of Korean Air.
Asiana Airlines Inc, South Korea's second-largest carrier, may have filled 74.7 percent of its cargo space in August, more than the 73.9 percent filled a year earlier, according to the company's preliminary figures. Asiana's shipments rose 20 percent last month to 39,911 tonnes, and capacity increased 14 percent to 53,430 tonnes. Demand for mobile phones and other electronics in the US is spurring the demand.
Cathay Pacific Airways Ltd's business volume in August was in line with the market performance, with both tonnage and yields meeting its expectations, said Lisa Wong a spokeswoman at Hong Kong's largest carrier, without providing exact figures. "The encouraging performance is due mainly to Hong Kong's export market, particularly to the US," she said.
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