Subscribe to our free, weekly email newsletter!


Price Trends: Air

By Elizabeth Baatz, Thinking Cap Solutions
April 01, 2010

Transaction prices for flying freight on U.S.-owned airliners’ scheduled flights increased 1.2% in February. Meanwhile, prices for flying cargo on chartered flights plunged 10.1%, and even air courier tags deflated half a percentage point. The airline industry’s aggregate prices and underlying operating costs both peaked in July 2008 before falling to the May 2009 low. From that low to February 2010, prices for all services have increased 8.7% and prices for air cargo (on scheduled flights) have grown only 5.4%. Industry costs, however, jumped 10.4% due largely to a 63% surge in fuel costs. Demands from recession-battered buyers will likely constrain air cargo annual inflation rates to 2.3% in 2010 and 0.2% in 2011.

% Change vs. 1 month ago 6 mos. ago 1 yr. ago
Scheduled air freight 1.2 4.8 -1.2
Chartered air freight & passenger -10.1 0.9 -0.9
Domestic air courier -0.5 8.1 12.8
International air courier -0.4 5.4 8.6

Source: Elizabeth Baatz, Thinking Cap Solutions. E-mail: .(JavaScript must be enabled to view this email address)

About the Author

Elizabeth Baatz
Thinking Cap Solutions

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Seasonally-adjusted (SA) for-hire truck tonnage in July headed up 1.3 percent on the heels of a 0.8 percent increase in June. The ATA’s not seasonally-adjusted (NSA) index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment, was 133.3 in July, which outpaced June’s 132.3 by 0.8 percent, and was up 2.8 percent annually.

Volumes for the month of July at the Port of Long Beach (POLB) and the Port of Los Angeles (POLA) were mixed, according to data recently issued by the ports. Unlike May and June, which saw higher than usual seasonal volumes, due to the West Coast port labor situation, July was down as retailers had completed filling inventories for back-to-school shopping.

With a 0.8 cent decrease, this week’s average price per gallon is $3.835 and stands as the lowest price since hitting $3.844 the week of November 25, 2013.

LTL carriers are rapidly investing in expensive, on-dock, three-dimensional size measurement capturing machinery, and they are hoping one day of being able to more accurately charge shippers rates based on the actual dimensions of their shipments, rather than the traditional weight-and-distance-based formula that has been in effect since the 1930s or even earlier.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) recently reported that its Freight Transportation Services Index (TSI) dipped 0.9 percent from May to June.

Article Topics

Features · Price Trends · Air Freight · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA