Air freight rates rise further as global market trends remain mixed
Growth continues despite regional volatility, with Asia driving gains while Europe and US lanes show mixed trends
Global air freight rates continued to increase last week as the market assessed the outlook following an uneasy ceasefire in the Middle East, according to data from TAC Index. The overall Baltic Air Freight Index (BAI00) rose by 4.2% in the week to April 20, taking it 23.1% higher year-on-year and keeping rates at levels typically seen during peak seasons in recent years.
Spot rates from Hong Kong edged up at a slower pace, while rates from India remained flat after having more than doubled in early March following the attacks on Iran by the US and Israel. Rates from China increased week-on-week on routes to both the US and Europe. The index for outbound Hong Kong (BAI30) rose 5.3% week-on-week, bringing it 29.3% higher year-on-year, while outbound Shanghai (BAI80) increased 3.7% week-on-week to stand 24.3% higher year-on-year.
In South East Asia, rates from Vietnam and Bangkok showed mixed trends after sharp increases in recent weeks. Rates from key East Asian hubs such as Seoul and Taiwan continued to rise week-on-week, particularly on Transpacific routes, reflecting ongoing effects of the Middle East conflict.
From Europe, rate levels were largely stable following recent sharp increases. There was a modest week-on-week decline on Transatlantic routes to the US and little change on routes to India, Japan, Mexico and the UAE, although rates increased further to China, Brazil and South Africa. The index for outbound Frankfurt (BAI20) rose 4.4% week-on-week and was up 5.6% year-on-year. Outbound London Heathrow (BAI40) fell slightly by 0.1% week-on-week but remained 62.2% higher year-on-year after sustained increases.
From the US, rates were mixed, with small week-on-week gains to Europe, excluding the UK, and to China, while rates declined to South America, except Brazil. The index for outbound Chicago (BAI50) increased 5.8% week-on-week but remained down 6.9% year-on-year. Rates from Mexico to Europe also rose week-on-week, remaining significantly higher year-on-year.