Pace of air cargo rate improvement slows in July
The pace of air freight rate growth in the air cargo industry has slowed, however, July's volumes registered strong growth and forwarders anticipate a strong peak season.
The average all-in buy rate across 28 major east-west lanes reached USD 2.64 per kilgramme, an increase of 1.5% against 2016, according to the latest Sea and Air Shipper Insight report from consultant Drewry.
Drewry's East-West Airfreight Price Index continued its upward trajectory in July, an increase of 1.9% month on month. In June forwarders were paying an average of USD 2.59 per kg.
While the increases in rates will be welcomed by air cargo carriers, the improvements continue to lag behind demand growth, which according to IATA stands at 10.4% in freight tonne kilometre terms over the first 6 months of the year.
The growth rate has narrowed since over the first 6 months rates rose by 7.9% compared with the first half of 2016. However, there is hope that the peak season could lead to improved rates as forwarders raise their capacity allocations.
"In anticipation of a strong peak season, several forwarders have upped their capacity allocations out of Asia and have lined up charter capacity. Drewry expects the airfreight rates to further grow in August," the shipping analyst was cited as saying.
Tag Keyword: Air Freight , Drewry , IATA