Air cargo rates in some of the world's main trade routes continued their downtrend in November defying regular seasonal trends for the end of the year.
The Baltic Exchange Airfreight Index (BAI) showed that spot and contract pricing paid by forwarders on the Hong Kong-North America route declined to US$6.49 per kilogram (kg) from the US$6.74 per kg seen in October.
The same trade lane saw a marked decline from the US$11.54 rate forwarders were forking a year ago.
Meanwhile, average rates for the Hong Kong-Europe trade also slipped month-on-month to US$5.62 per kg from the US$5.78 per kg charge in October.
Compared to the same period in 2021, this is also lower than the US$7.91 recorded then.
The sector usually experiences an increase in rates moving towards the traditional peak season months.
The decline, however, continues as the slowdown in air cargo persists after experiencing strong expansion in 2021.
IATA earlier said worsening global economic outlook, the Russia-Ukraine war, and the on-and-off lockdowns in China related to Covid-19 continue to drag demand.
On the other hand, ocean shipping has also seen a recovery from bottlenecks last year, prompting some volumes to shift back to the sea.
As more passenger flights return to service, the growth in belly hold space is also helping drive rates down.