Air cargo rates continue to decline in November

Air cargo pricing on some of the world’s major trade lanes continued to decline in November, bucking usual seasonal trends. The latest statistics from the Baltic Exchange Airfreight Index (BAI) show that spot and contract rates paid by forwarders on services from Hong Kong to North America slipped to an average of $6.49 per kg, compared with $6.74 per kg in October. Rates on the trade lane are also down on a year ago when forwarders were paying a whopping $11.54 per kg. Average prices from Hong Kong to Europe were also down on a month earlier, slipping to $5.62 per kg from $5.78 per kg in October.
Last year rates on the lane for November stood at an average of $7.91 per kg. Prices usually increase in the run-up to December as the industry enters its peak season. The declines come as the air cargo market continues to slow after rapid growth in 2021. Inflation, slowing economies, the war in Ukraine and Covid lockdowns in China have all resulted in demand declines, IATA said in its latest monthly summary.