Global air freight rates were largely stable last week after the sharp increases seen over the previous two months, according to the latest data from TAC Index. The global Baltic Air Freight Index (BAI00) rose marginally by 0.4% in the week ending May 11 and remained 35.8% higher year-on-year, as the market continued adjusting to the new operating environment following the attacks on Iran launched by the US and Israel at the end of February.
Spot rates from Hong Kong and India eased slightly during the week, although rates on Transpacific routes from South Korea to the US continued to rise. Rates on key outbound lanes from China to Europe and the US also declined week-on-week, though they remained significantly higher than a year ago.
The index for outbound routes from Hong Kong (BAI30), which reflects spot and forward rates, increased 1.6% week-on-week and was up 37.9% year-on-year. In contrast, the outbound Shanghai index (BAI80) fell 3.6% from the previous week, although it remained 36.1% higher compared with the same period last year.
Following the recent surge in rates, prices from Vietnam and Bangkok to Europe also softened week-on-week, while rates to the US continued to rise. From Seoul, Taiwan and India, rates to Europe increased further during the week, although trends on US-bound routes were mixed.
In Europe, air freight rates were generally softer after strong gains in recent weeks. Week-on-week declines were recorded on routes to the US, China, Brazil, Mexico and Australia. Rates to Japan were flat, while prices to India, South Africa and the UAE increased modestly, extending recent gains following the sudden reduction in Gulf capacity at the end of February.
The outbound Frankfurt index (BAI20) slipped 0.7% week-on-week but remained 13% higher year-on-year. London Heathrow’s outbound index (BAI40) declined 5.5% during the week, although it was still up 61.8% compared with a year earlier.
In contrast, rates from the US rose strongly week-on-week, with double-digit gains on routes to Europe, China and South America. The increases were led by higher southbound rates from Miami. The outbound Chicago index (BAI50) climbed 14.1% week-on-week, taking it 41.4% above last year’s level.
Meanwhile, rates from Mexico to Europe fell sharply from the previous week after recent increases, though they continued to remain higher year-on-year.
