Freightos – air freight spot prices spike

Online freight marketplace Freightos have said that global air freight rates have risen dramatically this peak delivery season. In Europe this has been partly because of intermittent bad weather events, which led to backlogs and played a part in higher air freight rates.

Freightos said that a standard Asia-Europe shipment on the spot market with flexible transit arrangements usually goes for between $2 – $5 per kilo. In the last few weeks of the peak season, the new normal price has been between $7 – $10 per kg.

Looking at the Europe to US routes, these have also spiked. Shipments from the EU to JFK airport in New York cost around $0.80 – $1.30 a kilo, but in the peak season this hit the $5 – $10 per kg band.

“Of course, urgent shipments are going for a lot higher,” said Manel Galindo, CEO of Freightos WebCargo. “Last week, we saw Hong Kong to Europe going for $21/kg, and Europe to South America at $26/kg.

“China-Europe rates will stay high. Even where there is some flexibility, rates will stay in the $7-10/kg band for several more weeks yet.

“The current backlog probably won’t fully clear before the lead up to the Chinese New Year closedown starts.”