UK-based shipping consultancy Drewry reported its East-West Air Freight Price Index declined by  1.1 points in June to a reading of 88.7, bringing the index down to its lowest level since it was first launched in May 2012. The Index fell fell below the US$2.90 per kg threshold for the first time with Drewry saying it expects pricing to remain week for the next few months.

“Whereas the eastbound trans-Pacific has taken the brunt of pricing falls in recent months, June’s decline affected all the main East-West trades in broadly equal measure, Drewry said. “Weak cargo growth coupled with rising capacity has further weakened the market, the latter fueled by booming passenger demand which added more unwanted bellyhold space. Drewry expects air freight pricing to remain weak over the next few months, as carriers release additional passenger capacity.”