The dramatic decline in seafreight spot market rates has served to widen the pricing differential to air rates to record levels, according to Drewry.
Highlighting the extent of the decline, average container rates for October on the backhaul Europe to Asia trade, where ships were barely two-thirds full, were more expensive than they were for the far bigger headhaul Asia to Europe leg. This was the first time this had occurred since Drewry started benchmarking the aggregate trade rate indices in 2011.
Despite similarly sluggish demand trends, airfreight spot rates have held up much better than ocean rates. Drewry’s East-West Air Freight Price Index, as published in its monthly Sea & Air Shipper Insight, rose for the fourth consecutive month in October to reach a year-high reading of 102.0 [May 2012=100].
