Airfreight prices fall in December, despite strong 2016 closeout

Despite a strong finish of 2016 at airports, and reports of high volumes through December, airfreight rates fell US$0.21, year-over-year, to $3.14 per kilogram in the month, according to Drewry’s latest East West Airfreight Price Index report. The market intelligence firm noted that December “traditionally sees a drop-off in rates” and that “the latest slide was not unexpected.”

The decrease marked the end of a steady rise that lasted from May through November. However, Drewry noted that December’s decline in rates was the smallest of its kind since 2012. “We expect to see a further seasonal decrease to the index in January, once again smaller than usual,” the report said.

Another notable metric is the y-o-y rate difference of $0.21 over 2015 for the month of December, when the rate per kilogram stood at $2.93.

IATA’s 2016 estimates align with the latest Drewry numbers, with initial estimates of global freight-tonne-kilometer (FTK) growth at 3.4 percent for the full year, which was up from 2015’s 2.3 percent annual growth. The aviation organization also forecasts FTK growth to stay on course, at 3.5 percent for 2017.

Those interested in learning more about where air freight is headed in 2017, should join us at Cargo Facts Asia in Shanghai, 25 – 26 April.  To register, or for more information, go to CargoFactsAsia.com.