Airfreight prices down in December

26 / 01 / 2016

Airfreight prices ended the year on a low note as underlying market weakness caused rates to sharply decline, but improvements are expected in January.

The latest Drewry East-West Airfreight Price Index shows that airfreight rates slid to $2.96 in December from $3.22 in November. It is the second monthly decline in a row.

The consultant said it had been expecting a decline in December as the peak season passed in December, but that "the degree of decline was much sharper than expected".

The year-on-year comparison also made for difficult reading, as prices this year are 15.4% adrift of December 2014. This decline is partly explained by reductions in the cost of oil as Drewry includes fuel and security surcharges in its rates.

Drewry expects there to be an initial improvement in January as a result of the Chinese New Year rush.

“But thereafter we expect further weakening in pricing until demand picks up in the Northern Hemisphere spring as European and North American retailers rebuild inventories for the new season,” it said.