Airfreight Export Consolidation from Japan (May)-9% Airfreight Export Volume

Airfreight exports from Japan in May totaled 85,581 tons (-9% y/y), according to the Japan Air Freight Forwarders Association (JAFA). This was the fifth consecutive month of year-on-year decline. By destination, exports to China were down 22% y-o-y. Although the city blockade was lifted in June, a full recovery of production is not expected until July, and it will take some time for cargo movements to return. Shipments to the U.S. were also down 13% y/y, following a 23% y/y decline in April. Air cargo carriers have been securing charter flights to the U.S., where demand for cargo is high, but the slowdown in cargo movement is creating more space for cargo. The slowdown in demand while supply has remained unchanged has upset the supply-demand balance, and there is a trend toward selling space at lower prices. Although air cargo space is becoming available, air freight rates remain high.