Drewry index gives some cause for rejoicing

Drewry’s East-West Airfreight Price Index rose by 0.3 points in March compared with February to a reading of 79.5.
The small increase came after four consecutive months of falling prices, during which period the index fell by over 20 points from an October peak.
In terms of pricing, rates increased by one cent month on month to $2.58 per kg.
However, it wasn’t all good news for the airlines. The March figure still represented the index’s second-lowest level since it was launched in May 2012.
The average price of $2.58 per kg from March was also behind the $3.05kg recorded during the same month last year.
That said the Drewry index does include fuel surcharges which are down on a year ago.
Figures from the US Energy Information Administration show that jet fuel prices stood at $1.07 per gallon in March this year compared with $1.63 for the same month last year.
Last year the airfreight industry also received a one-off boost from industrial action at west coast seaports during the first quarter.
Drewry said that it expects airfreight prices to “temporarily strengthen from its current lows as European and North American retailers rebuild inventories for the new Spring season”.