Air cargo pricing on the east-west trade lane declined in May to $3.22 per kilogram after two months of gains, according to Drewry.
The average price paid by freight forwarders on 21 east-west routes, as measured in Drewry’s East-West Air Freight Price Index, had been gaining ground since February’s result of $3.12 per kilogram. In March, the index stood at $3.34 per kilogram, and April’s total had risen to $3.37 per kilogram. However, the May result still showed growth of $0.07, year-over-year.
According to Drewry analysts, May’s result is just the start of pricing declines.
Drewry Sea & Air Shipper Insight.
“Ongoing freighter capacity rationalizations have helped to stabilize the market, but rising cargo capacity from passenger aircraft remains a challenge for the airlines and their forwarder partners and will serve to keep freight rates in check,” the analysts wrote.
The most recent numbers by the International Air Transport Association show that global air cargo activity increased by 4.7 percent, year-over-year, in May; in April, the agency had measured a 3.8-percent increase in activity. While activity increased significantly in May, capacity also ticked up, rising by 4.3 percent.
Regionally, Asia-Pacific carriers saw a 5.3-percent increase in cargo tonnage, but a 6-percent increase in demand. Despite this capacity uptick, the load factor remained at the top globally at 55.5 percent.