The price of air cargo out of Shanghai airport has begun to improve over recent weeks as cargo volumes have shifted from Hong Kong to the Chinese hub.

Prices from Hong Kong to Europe slipped by 1.5% week on week.

In a weekly market update, Peter Stallion of derivatives broker Freight Investor Services (FIS) said: “The big news is the clear transfer of cargo volumes out from Hong Kong through to Shanghai and Greater China. Beleaguered by continuous political strife, shrinking volumes, trade wars and overcapacity, rates out from Hong Kong continue to drop.

“Conversely Shanghai lanes resemble a slow but stable climb out from slack season. Although positive for the market, the shift of volumes presents significant volatility that can be hedged. Shanghai to Europe has jumped 4.74% in the past week.”