Airlines bump up freight rates

AVIATION        RECESSION      SINGAPORE AIRLINES

Singapore - Airlines including Lufthansa and Singapore Airlines have raised freight rates by 10-15% after a rebound in global consumption caused US and European retailers to increase shipment in order to make up for dwindling inventory.

After cutting capacity earlier this year, Singapore Airlines, Lufthansa, Cathay Pacific and other airlines had been able to restore freight rates to about US$2.71 to US$2.84 per kilogram on routes from Hong Kong to Europe and North America, said the South China Morning Post (SCMP) quoting Hong Kong freight forwarders.

A Shenzhen-based freight forwarder said Air China had raised freight rates seven percent or $0.29 per kilogram for shipments to Europe and the US from September 10. From tomorrow, the mainland carrier would lift its freight rates nine percent for North American routes, an official at Shenzhen Airport Air Cargo, a subsidiary of Shenzhen Airport, said.

Cathay, Lufthansa, Air France-KLM, Japan Airlines, All Nippon Airways, SIA and CargoLux have asked for a 15 to 30 percent increase in freight rates, effective October 1.

But many of them already lifted rates by 10 to 15 percent as early as September 1 because cargo holds were full, SCMP said.

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