Airfreight rates improve but still lag behind 2014 levels

Airfreight rates continued to climb in August thanks to improvements on Asian services, but figures still lag behind levels recorded in 2014.
The latest figures from analyst Drewry show that airfreight rates covering 48 trades increased by 12 cents compared with July to $3.04 per kg.
While this is an improvement on last month, it is still below the $3.34/kg recorded in August last year.
Rates have been on a downward trajectory this year, until July when they began to edge up.
Further improvements are expected this month and next, although this should come as no great surprise as prices generally jump during the peak season of October and November before easing off in December.
Drewry’s airfreight rate index also showed an improvement during the month.
“Drewry’s East-West Air Freight Price Index recovered 3.7 points in August to a reading of 93.7, following a 2-point recovery in July," it said.
“The index was lifted by strengthening rates on Asia origin trades into North America and Europe, despite notable declines in pricing on both legs of the Transatlantic.
“Drewry expects airfreight pricing to have strengthened, albeit low compared to the same period last year, through September and for this to continue into October as new product launches boost short term demand.”
Earlier today IATA issued its monthly airfreight demand update, which showed a small year-on-year increase in freight tonne kms. However, capacity additions outstripped demand growth putting pressure on load factors.

Source:Source: For more details, see Drewry Sea & Air Shipper Insight, www.drewry.co.uk
Notes: Notes: This index is a weighted average of all-in air freight "buy rates" paid by forwarders to airlines for standard deferred airport-to-airport air freight services on 21 major East-West routes for cargoes above 1,000 kg.