Global air freight rates increased all around the world last week

Global air freight rates increased all around the world last week according to the latest data from TAC Index, the price reporting agency on air freight.

The overall Baltic Air Freight Index (BAI00) calculated by TAC was up +3.4% in the week to July 14, with gains showing for the outbound indices of all the major air cargo hubs.

Despite reaching what is now usually regarded as the quiet season during the summer months, the index is now lower by only -3.1% from where it was 12 months ago – with the market seemingly unperturbed by renewed threats of higher tariffs for goods entering the US.

Overall rates on the busiest lanes out of China were higher both to the US and to Europe. The new BAI Spot indices showed little change out of Hong Kong over the week, but the overall index of outbound routes from Hong Kong (BAI30) – reflecting the full spectrum of spot and contract rates being paid – gained +1.8% WoW to leave it lower by only -6.7% YoY. Outbound Shanghai (BAI80) gained a more pronounced +4.1% WoW to leave it lower by only -3.0% YoY. Elsewhere out of Asia, rates from Vietnam were little changed to Europe, though lower to the US. Out of India, rates were higher again WoW both to Europe and the US.

From Europe, rates were little changed WoW on lanes to the US, China and Japan and remained ahead YoY on all the new lanes recently added this month to Australia, Brazil, Mexico, India and South Africa. The index of outbound routes from Frankfurt (BAI20) gained +1.5% WoW, led by further increases on rates to the US, leaving it lower by -2.4% YoY. Outbound London (BAI40) notched up another big gain, also led by rising rates on Transatlantic lanes, rising +11.4% WoW to leave it ahead by a healthy looking +24.1% YoY.

Out of the US, rates were also higher again on lanes to Europe, China and South America. The index of outbound routes from Chicago (BAI50) gained +2.1% WoW, leaving it lower by -7.3% YoY.