European Airfreight Rates Spiraled Up

The prices for airfreight between Europe and the US reached unprecedented levels during November-December 2017.  This was due to the strike by ground handling agents in Frankfurt, Germany, weather delays and the business environment.  Additionally, the e-commerce industry has increased demand for using airplanes to satisfy their clientele.  European shipments to Kennedy airport in NY range from $5-$10 per kilo – the normal being $1-$1.30; time-sensitive cargo can exceed $20 per kilo.  Customers are willing to pay more money to get their products quicker.  Utilizing trucks or container ships are cheaper options, but take longer to transport goods.  Industry experts anticipate that capacity will tighten further in the coming years between Asia and the US, due to China’s rising middle class.