Asian air freight prices have fallen 14.1% from the same month last year, the lowest that they've been in almost eighteen months. This is reported in the Drewry air Freight Price Index provided by Drewry Publishing. Drewry provides an independent viewpoint, creating comprehensive databases of maritime industry intelligence.
The Drewry Freight Price Index measured air freight pricing from Shanghai, which also went down for the third time in the past four months. The Shanghai air freight pricing numbers declined 6.4% from the month before.
Freight traffic on Asian airlines fell in February of this year. The price drop occurred as the freight traffic declined. This drop in freight traffic decreased 4.2%, year over year, in February. This was the first time this happened since October 2009. This information was provided by the Association of Asia-Pacific Airlines.
OAG aviation, an aviation industry marketing group, says that airlines in the Intra-Pacific region "is the clear leader" in terms of "absolute growth" in April, using planned capacity levels worldwide as a measure. This was reported in OAG's Frequency and Capacity Trend Statistics (FACTS) report for April 2011. They also pointed out that over the past five years, this region has shown an average capacity growth of seven percent, compared to the global average of four percent. This makes it more understandable that the current air freight rates could fall to this 17 month low.
The CEO of UBM Aviation, who produces the OAG FACTS report stated in the April report that Japan "is such a major influence on the world stage and no region will be immune from the effects of the devastation" caused by the recent earthquake and resulting tsunami in Japan.
The Chinese New Year brought a break in production, which is always factored into the freight traffic predictions for the airlines. This year, the freight traffic for Asian airlines, taking into consideration the break in production for the Chinese New Year, had a decline of 14.5% from January.
Capacity was expanding during this time. According to the Association of Asia-Pacific Airlines, capacity expansion rose 1.7% while Asian airline freight traffic prices were dropping. Capacities and prices may affect ocean shipping companies' ocean freight capacities and prices as well.
The capacity increases have helped push the Drewry Air Freight Price Index to 98.1, according to the Journal of Commerce. They report that this is the lowest point since September of 2009 when the reading was 97.5.
The Drewry Freight Price Index measured air freight pricing from Shanghai, which also went down for the third time in the past four months. The Shanghai air freight pricing numbers declined 6.4% from the month before.
Freight traffic on Asian airlines fell in February of this year. The price drop occurred as the freight traffic declined. This drop in freight traffic decreased 4.2%, year over year, in February. This was the first time this happened since October 2009. This information was provided by the Association of Asia-Pacific Airlines.
OAG aviation, an aviation industry marketing group, says that airlines in the Intra-Pacific region "is the clear leader" in terms of "absolute growth" in April, using planned capacity levels worldwide as a measure. This was reported in OAG's Frequency and Capacity Trend Statistics (FACTS) report for April 2011. They also pointed out that over the past five years, this region has shown an average capacity growth of seven percent, compared to the global average of four percent. This makes it more understandable that the current air freight rates could fall to this 17 month low.
The CEO of UBM Aviation, who produces the OAG FACTS report stated in the April report that Japan "is such a major influence on the world stage and no region will be immune from the effects of the devastation" caused by the recent earthquake and resulting tsunami in Japan.
The Chinese New Year brought a break in production, which is always factored into the freight traffic predictions for the airlines. This year, the freight traffic for Asian airlines, taking into consideration the break in production for the Chinese New Year, had a decline of 14.5% from January.
Capacity was expanding during this time. According to the Association of Asia-Pacific Airlines, capacity expansion rose 1.7% while Asian airline freight traffic prices were dropping. Capacities and prices may affect ocean shipping companies' ocean freight capacities and prices as well.
The capacity increases have helped push the Drewry Air Freight Price Index to 98.1, according to the Journal of Commerce. They report that this is the lowest point since September of 2009 when the reading was 97.5.
About the Author: Nelson Cabrera is the Business Development Manager of Lilly & Associates International, a transportation and logistics company specializing in ocean freight and ocean shipping services. For more information, please visit http://www.shiplilly.com/.
Article Source: http://EzineArticles.com/?expert=Nelson_Cabrera 
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