Drewry: How low can air freight rates fall?

Air freight rates stabilised in July, bringing to an end seven consecutive months of falling pricing in the wake of a marked slowdown in world cargo demand, according to Drewry. UK-based Drewry noted that its East-West Air Freight Price Index recovered 2.0 points in July to a reading of 90.3, lifting it off its lowest ever level since the index was first launched in May 2012.

“We now expect air cargo traffi c to stagnate in 2015. With capacity continuing to rise, supported by strong passenger demand, the industry faces a challenging period of weak load factors and low yields. With jet fuel costs set to fall further, importers and exporters look set to benefi t from ever-lower airfreight pricing.