Freight prices eased, but now set to rebound, says Freightos

Airfreight prices that finally relaxed after the 2017 holiday season are poised to increase again with the approach of the Chinese New Year, occurring this year in mid-February, according to estimates from online pricing platform Freightos.

During December, prices more than doubled on some routes, with shipments between Asia and Europe increasing to a rate of between US$7 and US$10 per kilogram. Typical increases related to peak-season operations were compounded by weather events that caused airport disruptions in the United States and Europe. Bad weather in Memphis – where FedEx’s hub is located – continued through today, but most weather disruptions have since cleared, along with the subsequent cargo backlogs.

Pricing on the China-to-U.S. route eased to around $6 to $7 per kilogram, but is unlikely to stay in that range, according to Freightos WebCargo CEO Manel Galindo.

“At this point, I’d predict prices to jump to $10 to $12 per kilogram, as we get closer to Chinese New Year, with urgent shipments facing prices in the $10 to $17 bracket,” he added.