Drewry: Freight rates hit 2017 high in October

Airfreight rates for East-West routes reached their highest level so far for the year in October, reaching US$2.89 per kilo, as the impact of peak season demand began to be reflected in rising rates, according to Drewry’s latest East-West Airfreight Price Index report.

Rates stood about 2.5 percent higher, year-over-year, for October, and saw their highest month-over-month gain reported in the past 12 months, with an increase of 7.5 percent over September. The index similarly rose to its highest level since November 2016, climbing 6.9 percentage points from September.

While other industry agencies – most recently the Association of Asia Pacific Airlines – are reporting slower growth this peak season, airfreight volumes are still robust and are expected to remain strong. That strength is reflected in rising freight rates.

According to Drewry research analyst Shakin Praveen, “Based on seasonal trends and anecdotal reports Drewry expects airfreight rates to increase further in November.” If 2017 freight rate growth continues to track or exceed that seen last year, as it has for the past two months, November freight rates are likely to average at least US$3.06 per kilo.