Air cargo rates steady, market waits to see US tariff moves
Rates were little changed overall on the busiest lanes out of China both to the US and Europe.
Global air freight rates were little changed overall last week, according to the latest data from TAC Index.
"The global Baltic Air Freight Index calculated by TAC edged slightly lower by -0.1 percent in the week to July 7, leaving it lower by -7.3 percent over 12 months with rates staying within recent ranges as the market waits to see what happens when the 90-day suspension of higher tariffs on goods entering the U.S. from China, Europe and elsewhere comes to an end."
Rates were little changed overall on the busiest lanes out of China both to the U.S. and Europe, the update added. "The new spot indices – reflecting purely spot rates out of Hong Kong (which moved to public trials from July 1) – were edging up as the week went on. The overall index of outbound routes from Hong Kong – reflecting the whole spectrum of spot and forward contract business – was also up +2.4 percent WoW, leaving it lower by only -8.2 percent YoY. Outbound Shanghai was also up a little by +0.9 percent WoW to leave it lower by -9.6 percent YoY."
Elsewhere out of Asia, rates from Vietnam were also up WoW both to the U.S. and Europe but still significantly lower YoY. Rates out of India were little changed, the update added.
Out of Europe, rates were lower overall on Transatlantic lanes to the U.S. as well as Japan though higher on routes to China. "Of various new lanes recently added – including to Mexico, Brazil, India, Australia and South Africa – rate patterns were mixed WoW but all were in positive territory by varying degrees YoY."
The index of outbound routes from Frankfurt was slightly lower overall, dropping -0.7 percent WoW to leave it at -7.2 percent YoY, with higher rates to North America offset by falls on rates to Asia.
Out of the U.S., rates were mostly lower WoW including to Europe, China as well as South America though rates on the busiest lanes southbound from Miami added further to recent gains and remained comfortably ahead YoY, the update added.
