Airfreight rates decline again in October

Image: Shutterstock

Airfreight rates continued to buck normal seasonal trends and declined again in October as the air cargo market remained subdued.

The market usually sees an increase in rates out of Asia between September and October as the industry continues to ramp up toward the peak season. However, that was not the case this year.

The latest figures from the Baltic Exchange Airfreight Index (BAI), which take into account spot and contract pricing paid by forwarders, show that prices from Hong Kong to North America declined in October to $6.74 per kg from $7.94 in September.

Rates on the route are also down 32.2% year on year.

Meanwhile, average rates from Hong Kong to Europe in October slid to $5.78 per kg from $6.09 per kg a month earlier.

Compared with last year, prices on the route are down 13.5%.

However, it should be noted that rates in October on both routes are still ahead of 2019 pre-Covid levels when forwarders were paying $3.49 per kg from Hong Kong to North America and $2.82 per kg to Europe.

The price declines come as the market outlook remains weak due to slower consumer spending caused by inflationary pressures, ongoing lockdowns and their impact on production levels and cargo capacity continues to recover as passenger flights – and therefore bellyhold capacity – are restarted.

Airfreight rates on key lanes continue gradual descent in September

China faces slow airfreight demand as Covid containment continues

Share this story

Related Topics

Latest airfreight rates news

Air cargo set for slow recovery as it reaches the bottom

Air cargo volume declines have bottomed out but are expected to remain in the doldrums for a while yet. Writing…

Read More

Share this story

Putzger perspective: Not there yet

Are we there yet? One of the hallmarks of summer are cars headed to vacation destinations echoing with this refrain…

Read More

Share this story

Winter of discontent predicted as air cargo rates plummet

With volumes down and capacity up, July saw global air cargo rates continue their downward trajectory – foreshadowing a tough…

Read More

Share this story

Damian Brett

Damian Brett
I have been writing about the freight and logistics industry since 2007 when I joined International Freighting Weekly to cover the shipping sector.After a stint in PR, I have gone on to work for Containerisation International and Lloyds List - where I was editor of container shipping - before joining Air Cargo News in 2015.Contact me on [email protected]