Ocean delays and holiday season makes air shipments costlier

With holiday season approaching and a shift from ocean transport to air happening, the cost of air shipments has been on a steady rise. As per the Baltic Exchange Airfreight Index (BAI), last week’s prices on freight services from Hong Kong to North America had reached USD 11.22 per kg, almost 23% higher than that in the starting of October and highest ever on the BAI. Similarly, fright travelling from Hong Kong to Europe is USD 7.80 per kg which is also relatively inflated.
On the other hand, the Freightos Air Freight Index revealed the airfreight rates from Asia/China to West Coast of US reached USD 14.22 per kg and those for East Coast of US reached USD 12.76 per kg. In its weekly market wrap up, Freightos said that with the holidays nearing and ocean delays pushing some shipments to air, peak season air cargo rates have continued to climb