Air cargo rates reached their highest level of the year in October but continue to lag behind the year-ago level.
The latest figures from the Drewry Sea & Air Shipper Insight show that the weighted average airfreight rate on 21 key east-west trades climbed to $3.31 per kg in October.
It is the highest rate recorded this year and also represents the fourth monthly increase in a row since prices fell to a low of $2.86 per kg in June.
Further increases are expected in November as the industry enters its busiest month of the year.
While the increase will be welcomed by the industry after a year of weakness in pricing, rates are 11.7% behind last year’s level for October of $3.75 per kg.
Drewry produces an index based on the rates, which also reached an annual high in October.
“Drewry’s East-West Air Freight Price Index rose for the fourth consecutive month in October, climbing 2.9 points to a reading of 102 [May 2012 = 100],” Drewry said.
“October’s reading was the highest of the year but it remains 13.5 points adrift of the same month last year, indicative of continuing underlying weakness in the market.
“Drewry expects air freight pricing to have strengthened further through November as end-of-year peak season boosts short-term demand, before receding when the peak season ends.”
Source: Drewry Sea & Air Shipper Insight
Notes: This index is a weighted average of all-in air freight "buy rates" paid by forwarders to airlines for standard deferred airport-to-airport air freight services on 21 major East-West routes for cargoes above 1,000 kg.
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