Rates continued to track ahead of a year ago in May

Airfreight rates on key trade lanes continued to track ahead of last year’s levels in May, according to the latest figures from TacIndex.

Numbers from the data provider show that on services between Hong Kong and the US, the average airfreight rate paid to carriers increased 38% year on year to $3.16 per kg.
Prices are down on last month, when carriers were paying $3.18kg.
This is a reflection of a flattening off in demand growth over the summer months – there were also declines in rates between April and May last year and in 2015 – so this should not come as too much of a surprise.
Supply chain consultant Drewry warned in its last market update that prices could weaken over the coming months in line with demand trends.
And while there was an improvement on a year ago, prices continue to lag behind 2015 levels, by 3.5%.
There was also a year-on-year improvement on rates covering the Hong Kong-Europe trade lane, which increased by 14.5% against last year to $2.21 per kg.
This route also saw prices decline on 2015 levels, when carriers were able to achieve $2.50 per kg.
However, unlike Hong Kong-US, prices were up on the level recorded a month ago.
Meanwhile, on services between the German hub of Frankfurt and North America, airfreight rates in May increased by 21% year on year to $2.30 per kg.
Compared with a month ago, the route registered a decline from $2.56.