Drewry’s East-West Air Freight Price Index, a weighted average of airfreight rates across 21 East-West trades, fell by 1.4 points to 110.8 in December. The main cause for the decline is the waning boost of earlier new high-tech product launches, especially for the falling rates from Asia into North America and Europe.
Pricing is expected to decline in January for routes out of Asia, but the coming Chinese New Year will soften the blow with an increase in demand levels.
Air cargo demand could see improvement at the expense of the ocean market due to current capacity issues such as the potential strike action at U.S. ports and cancelled voyages. Shippers, particularly those wanting to move higher value goods, might shift some cargo to the air despite having to pay a premium for expediting.