Airfreight rates continued to climb in July, reaching a new high for the year and closing in on last year’s level.
The latest figures from consultant Drewry’s Sea and Air Shipper Insight Report show that in July average global airfreight prices reached $2.82 per kg, up from June's level of $2.78 per kg.
It is the second month in a row that prices have increased, although last year prices also climbed during the summer months before beginning to decline in November.
Prices are also now just 1.4% behind last year’s level for July, which stood at $2.86 per kg.
Drewry said the increase was down to seasonal demand and higher fuel prices and added that rates were at their lowest level for July since the report’s inception in 2012.
It also warned to expect continued pricing pressure through the summer.
“Airfreight rates managed to hold onto last month’s gains to stabilise in July, supported by strengthening seasonal demand,” Drewry said.
“The latest reading still signified the lowest July level since the index first launched in 2012, providing a reminder of the general weakness of the market.
“Higher fuel costs have played a part in driving this recovery, though signs are emerging of a mild strengthening in demand conditions, albeit from a low base.
“Drewry expects airfreight pricing to remain under pressure for the rest of the year as air cargo capacity continues to expand at a faster pace than demand.
“Short term there may be a mild pricing boost as some bellyhold capacity is withdrawn at the end of the Northern Hemisphere’s summer holiday season and demand continues to pick up.”
