Airfreight rates on the transpacific trade were on the slide in October but increased as the month progressed, while prices to Europe continued to improve.
The latest figures from the Baltic Exchange Airfreight Index (BAI) calculated by TAC Index show that average rates – both spot and contract – for the trade lane decreased to $5.73 per kg in October compared with $5.98 per kg in September.
Many had been expecting rates in October to ramp up due to three days of port strikes on the US east and Gulf coasts and as a reflection of the historical increase between the two months as the industry heads towards the peak season.
However, it appears the weaker-than-expected market reported in September continued in October and this, combined with the effects of the Golden Week holiday in China, took its toll on the market.
It should be noted, however, that rates did improve as the month progressed and by the end of the month had reached $5.89 per kg.
Compared with last year, rates between Hong Kong and North America are up 4.4% on last year, but this is down from the 22% year-on-year improvement registered in September – perhaps a reflection of the improving market conditions last year.
Meanwhile, rates from Hong to Europe in October continued on an upward trajectory that started in August. Rates on the trade reached $4.88 per kg in October compared with $4.66 per kg in September reflecting usual seasonal trends.
Compared with last year, rates are up 14.6% year on year. However, this does represent a narrowing of performance compared with the summer months when the year-on-year improvement was more than 20% - perhaps a reflection of improving market conditions last year.
For the Frankfurt-North America trade, rates continued to trend downwards and were 18.3% behind last year’s levels due to the amount of passenger capacity that has been added back into the market over the past year.
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