Latest Drewry numbers are more bad news for airfreight

Airfreight is still in the doldrums, judging by the latest Drewry’s East-West Air Freight Price Index, which fell 1.3 points last month to 79.1, eliminating gains that had been made over the previous two months. May’s grim numbers are the lowest posting since the index was launched in May 2012. In February 2016, the index dipped to a similarly low 79.2 index points.

May’s index shows airfreight prices declining to US$2.57 per kilogram, compared with $2.61 per kilogram a month earlier. Over the last year, rates peaked in October 2015, at $3.24 per kilogram.

The rate drops may continue for the next few months, according to Simon Heaney, senior manager, supply chain research for Drewry. He said he expects airfreight pricing to remain “under pressure through the Northern Hemisphere over the summer season.” Heaney added that more passenger aircraft will be entering into service to support the peak tourist season, which will release even more bellyhold capacity.