AIR cargo rates continued to register declines on major east-west trades in February compared with last year as the timing of Lunar New Year break affected performance.

The latest figures from the Baltic Exchange Airfreight Index (BAI) show that rates from Hong Kong to North America were down 5.5 per cent year on year in February to US$4.66 per kg.

Prices were also down on January when rates stood at $5.22 per kg, reports London's Air Cargo News.

This year, the two-week Lunar New Year holiday in much of Asia started on February 10 against January 22 in 2023, which is reflected by the rate decline between January and February.

However, while rates were still lagging behind 2023 levels - prices have been on the decline for 18 months - the rate of decline narrowed from the 15 per cent drop-off registered in January as prices earlier in February soared ahead of the Lunar New Year holiday, reaching a peak of $5.30 per kg in the week ending February 11.

From Hong Kong to Europe prices were down 5 per cent year on year to $4.18 per kg, but they were up on January when rates on the trade stood at $4.12 per kg.

Prices were strongest early on in the month before declining in line with the holiday.

In the last week of the month, rates from Hong Kong to Europe even exceeded the levels registered from Hong Kong to North America - a rare occurrence.

This perhaps reflects some modal shift as those looking to ship to Europe looked to find an alternative to ocean shipping services which are affected by missile attacks on ships in the Red Sea.