Global air freight rates stabilise after New Year decline
TAC Index data shows modest gains last week, with Asia steady and Europe and the Americas seeing a sharp rebound.
Global air freight rates stabalised last week following a sharp New Year decline, according to the latest figures from TAC Index, the leading price reporting agency for air freight markets. The global Baltic Air Freight Index (BAI00) rose by 0.6% in the week to 12 January, leaving it 4.9% lower than a year ago. However, the headline index concealed marked regional variations, with rates from Asia broadly flat, while prices from Europe and the Americas recovered strongly from the previous week’s falls.
Rates on the busiest routes from China rose slightly to the US and fell marginally to Europe, but were higher year on year in both directions. BAI spot rates from Hong Kong continued to trend lower during the week, as sources reported that the tender cycle for forward block space agreements (BSAs) was fully under way for the year ahead. The full index of outbound routes from Hong Kong (BAI30) fell by 6.4% week on week, leaving it down 4.8% year on year. Outbound Shanghai (BAI80) was flat week on week, remaining up 4.0% year on year. Elsewhere in Asia, rates increased week on week from Vietnam, Bangkok and Seoul to the US, but declined on routes to Europe. Rates from Taiwan fell week on week but remained comfortably higher year on year in both directions. By contrast, rates from India edged up to Europe and dipped slightly to the US, but were sharply lower year on year on both routes.
From Europe, rates surged again week on week on busy transatlantic routes to the US and also rose on services to Australia, the UAE and China, but declined on routes to India, Japan, Brazil, Mexico and South Africa. Supported by higher rates to Asia and North America, the index of outbound routes from Frankfurt (BAI20) jumped by 10.8% week on week, reducing its year-on-year decline to 10.7%. Outbound London Heathrow (BAI40) climbed even more sharply, rising 18.4% week on week and leaving the index unchanged year on year.
From North America, rates also rebounded strongly week on week on transatlantic routes to Europe, particularly to Germany and the UK, but slipped slightly on routes to China and South America. Rates remained firm on the busiest southbound routes from Miami. The index of outbound routes from Chicago (BAI50) rose by 10.4% week on week, although it remained down 30.1% year on year. Rates from Mexico to Europe also increased sharply, returning to positive territory on a year-on-year basis.
