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

The “good news story” of the season appears to be generated by officials at The Port of Oakland, who report that it has taken additional steps in an ongoing effort to manage a surge of inbound container vessel calls.

The PMA, which represents employers at America’s 29 West Coast ports, has finally asked for federal mediation in its contract negotiations with the ILWU.

Seasonally-adjusted (SA) for-hire truck tonnage in November was up 3.5 percent compared to October, which was up 0.5 percent over September at 136.8 (2000=100), marking the highest SA on record.

UPS said that through this acquisition it will augment its healthcare expertise and network in Europe, specifically in the fast growing healthcare markets in Central and Eastern Europe.

Carloads were up 12.1 percent at 312,271, and intermodal at 280,337 containers and trailers saw a 4.5 percent annual gain.

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