Airfreight rates pick up in June thanks to increases in fuel prices

Airfreight rates reached their highest level in seven months in June following on from improved demand performance for the month and higher fuel prices.
The latest airfreight figures from Drewry’s Shipper Insight Report show that prices climbed to $2.75 per kg in June from $2.61 in May to reach their highest level since December last year.
The gap to last year’s airfreight rate performance has also narrowed and was just 3.5% down on last year when airlines were able to achieve $2.85 per kg.
Its index stood at 84.8 points compared with 87.9 points last year.
Drewry said that the improvement in year on year comparisons was likely to be driven by increasing fuel prices. The consultant expected rates to remain under pressure during the summer.
“Compared to the same month last year the index is now just 3.1 points adrift, driven by a 40% rise in jet fuel costs over the past six months,” the consultant said.
“Drewry maintains its expectation for airfreight pricing to remain under pressure through the Northern Hemisphere summer season, as more passenger aircraft are brought into service to support the peak tourist season.
“Throughout this period, carrier attempts to pass on higher fuel costs will become increasingly tested, as freight capacity continues to expand at a faster pace than cargo demand.”
The improved freight rates follow a strengthening in demand during the month.
Analyst WorldACD said that, after a poor start to the year, worldwide chargeable weight improved by 2.7% year on year in June.
WorldACD said that the uptick was caused largely by a strong showing for the Asia Pacific region, which saw incoming traffic for the month increase by 7.1% and outgoing traffic up by 6.6% on a year earlier.