Cargo Facts
SUBSCRIBE
  • NEWS
  • DATA
  • MULTIMEDIA
  • MAGAZINE
    • Issue Archive
    • Weekly Update
  • EVENTS
  • CONSULTING
Saturday, March 6, 2021
Log In
No Result
View All Result
  • Aircraft Leasing
  • Capacity & Demand
  • Carriers
  • E-Commerce
  • Engines
  • Express
  • Freighter Aircraft
  • Freighter Conversions
Cargo Facts
  • NEWS
  • DATA
  • MULTIMEDIA
  • MAGAZINE
    • Issue Archive
    • Weekly Update
  • EVENTS
  • CONSULTING
Log In
No Result
View All Result
Cargo Facts
No Result
View All Result

Air freight rates soar in November

Charles Kauffman by Charles Kauffman
December 22, 2016
in News Archives
Share on FacebookShare on TwitterShare on LinkedIn

Air freight rates on major east-west routes reached a year-high in November, according to UK-based freight market analyst Drewry. If that’s not reason enough to uncork the champagne during holiday celebrations this month, early indicators also suggest that high rates and strong demand have continued into December.drewry-east-west-november

In its monthly East-West Airfreight Price Index, Drewry showed rates up 6.2 points in November, the steepest increase in 2016. The Index now stands at 103.2 (based on a value of 100 for May 2012)

Drewry points out that rates are well-ahead of November 2015 when the index was at 99.3. November 2016 is the first month air freight rates rose above May 2012, when Drewry launched the Index.

However, as we always do in these sorts of discussions, we point out that freight rates are a top-line item, and that to evaluate a rise or fall in rates one has to know what has happened with related costs. For example, if fuel surcharges decrease in line with falling fuel price, then a decline in rates may have no impact on the bottom line. According to the U.S. Energy Information Administration’s Jet Fuel Spot Price log, average fuel prices were actually down US$0.10 per gallon between October and November 2016 to $1.36 per gallon as freight rates increased.  Year-over-year, fuel prices were nearly flat in November 2016 compared to the same month in 2016, (up $0.03 in November 2016).

Also, as we said in our examination of November data from major carriers and airlines (you can read it here), we believe that worldwide air freight traffic was likely up between 7% and 8% y-o-y in the month. Combine the substantial rate increase with the increased volume, and it seems safe to say that November will be remembered as a very good month.

Looking forward, Simon Heaney, Drewry’s senior manager, supply chain research said “Anecdotally, while it sounds as if rates have come down slightly in December, carriers are saying rates are surprisingly high for the last week before Christmas – and even more surprisingly – that January is looking strong.”

Tags: air cargo demandair freight rates
Previous Post

Peak season boosts volumes and costs for FedEx

Next Post

The source of this year’s peak season demand

Related Posts

ASL 738F
Express

CFC’s Horst on e-commerce-driven EU airport peak

February 26, 2021
GAMECO adds third conversion line for Boeing
Freighter Conversions

GAMECO adds third conversion line for Boeing

February 9, 2021
UPS starts 2021 with record Q4 profits, international volumes
Express

UPS starts 2021 with record Q4 profits, international volumes

February 4, 2021
Next Post

The source of this year's peak season demand

Leave a Reply Cancel reply

Your email address will not be published.

By subscribing you agree to our Terms of Use and Privacy Policy

Get Latest Issue

CARGO FACTS CONSULTING

4 airlines that could end up with NCA’s 747-400Fs

Japanese air exports up in December and January, imports down

March 3, 2021
DHL begins transferring 767 ops to Amerijet

2020 express volumes up amid lower yields

March 2, 2021
  • About Us
  • Help Center
  • Privacy Terms
  • ADA Compliance
  • Advertise

Follow Us

twitter twitter linkedin podcast

© 2021 Royal Media & Cargo Facts

No Result
View All Result
  • News
    • All News
    • Aircraft Leasing
    • Capacity & Demand
    • Carriers
    • E-Commerce
    • Engines
    • Express
    • Freighter Aircraft
    • Freighter Conversions
  • Data
  • Multimedia
  • Magazine
    • Issues Archive
    • Weekly Update
  • Events
  • Consulting
  • Subscribe
  • Log In / Account

© 2021 Royal Media & Cargo Facts

Go to mobile version