nternational data suggest prices in the airfreight market have bottomed out, meaning large rate falls are coming to an end. This is according to the latest research by Transport Intelligence (Ti) which found global head haul rates dropped to $2.49 per kg in November, down 15.6% versus three months prior, and were down 48% year-on-year.“Prices are becoming less volatile versus the previous 24 months when month-on-month price changes averaged around 3%,” reads its airfreight rate tracker report.According to Ti analysts, the lower price will now likely make rates more susceptible to short-term changes in both supply and demand factors, but the size of price changes is set to be smaller. This is, of course, assuming the market suffers no major shocks.The report found that while airfreight rates have continued their downward trend, many figures are misleading when compared to y-o-y figures as the experiences following the global Covid outbreak were so extreme. “Looking at the shape of the price graph, there are some tentative signs that the rate of the falls in freight rates is lessening. It is far from certain that rates will stop falling, not least as the supply of belly freight continues to grow. However, it appears likely that the violent falls in freight rates seen over the past four quarters will not be repeated.”
