Air cargo rates decrease in June as summer lull arrives
Air freight rates declined again in June as the quieter summer period resulted in a demand slowdown. The latest figures from Baltic Exchange Air freight Index (BAI) show average rates, based on contract and spot process paid by forwarders, on services from Hong Kong to North America slipped to US$4.92 per kg in June from US$5.07 per kg in May. Compared with last year, rates are 43.6% down. From Hong Kong to Europe, average rates were down from US$3.77 per kg to US$3.73 per kg and against a year earlier, prices are down 40.4 per cent. The Scan Global Logistics (SGL) stated The fall between May and June is typical for the year given that demand reduces during the summer period and capacity increases as bellyhold capacity is added for the summer season. “However, increases are recorded ex-Africa (5 per cent), ex-Central & South America (3 per cent), Middle East and South Asia (3 per cent).” said it expected the current quiet conditions to continue. It stated prices tend to fall incrementally during the summer before starting to pick up again in September ahead of the summer peak season.