Airfreight rates continued to rise in May while demand also continued to beat last year’s levels.

The Baltic Exchange Airfreight Index (BAI) shows that in May rates from Hong Kong to North America increased 9.1% year on year to $5.53 per kg.

From Hong Kong to Europe rates paid by forwarders are up 17% on a year ago at $4.41 per kg.

For both trades, it is the second month in a row of year-on-year increases following around 20 months of declines.

The higher prices reflect the worsening market conditions in 2023 but also a surge in e-commerce volumes out of Asia and the Red Sea shipping crisis that has resulted in some modal shift to air and the rise of sea-air solutions out of the Middle East and South Asia.

Rates are also up on last year at global level, according to WorldACD. Its figures show that overall prices exceeded 2023 levels for the first time in May and by week 21 were up 4% compared with a year ago.

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