Freight rates are on the rise for Asian services, with air freight recently impacted by the Middle East conflict and carriers planning to implement a GRI for ocean freight.
Air Freight
The missile and drone attack on Israel last week has added to the geopolitical tension in the Middle East, which has subsequently led to issues on air freight capacity and rates to/from the Middle and Far East.
In the wake of Iran’s attack, several Middle Eastern flights and services were cancelled and services to and from the Far East services were routed around the danger area.
With capacity under pressure, air freight rates have been rising on many Asia services.
Ocean Freight
A General Rate Increase (GRI) for Asia imports is currently planned from 1st May 2024. The level of the GRI will vary by carrier and by route. However, the numbers being proposed at the moment suggest a significant increase may be incoming.
Market conditions will always determine whether GRI’s are successfully implemented and as it has often been the case that GRI’s are adjusted, or even cancelled, right up until the last day. Nethertheless, the Middle East uncertainty and Iran’s capture of the MSC Aries, have added to an already volatile market.
The team at Regal Crown will be closely monitoring developments, but in the meantime we suggest that customers prepare for an increase.
