Global air cargo prices ease as post-peak softness spreads across regions

Global air freight rates edged slightly lower overall last week, according to the latest data from TAC Index, the leading price reporting agency for air freight markets. The global Baltic Air Freight Index (BAI00), calculated by TAC, fell by 3.3% in the week to 19 January, leaving it down by just 3.6% compared with the same period a year earlier.

Rates on the busiest routes out of China were marginally lower week on week to both Europe and the US, but remained comfortably higher year on year in both directions. BAI spot rates out of Hong Kong continued to trend lower following the end of the recent peak season, with no sign yet of a ‘mini peak’ ahead of Chinese New Year, which falls slightly later this year in mid-February. The full index of outbound routes from Hong Kong (BAI30) was only marginally lower, down 0.4% week on week, supported by strong regional activity in South East Asia, leaving it 2.1% lower year on year. Outbound Shanghai (BAI80) slipped by 2.2% week on week but remained ahead by 7.4% year on year.

Out of South East Asia, rates fell sharply to both Europe and the US from Vietnam and Bangkok, leaving both significantly lower year on year. Rates were also mostly lower week on week from Taiwan and Seoul, although they remained well ahead year on year. From India, rates changed little, but continued to remain well down year on year.

Out of Europe, rates on busy transatlantic routes to the US eased after recent gains and were also lower week on week to Mexico and South Africa, although they remained well up on those lanes year on year. Rates were higher week on week on routes to China, Japan, India and Brazil. The index of outbound routes from Frankfurt (BAI20) fell by 7.5% week on week, leaving it down 12.2% year on year. Outbound London Heathrow (BAI40) declined by a similar 7.4% week on week, but remained up by 1.6% year on year.

From the US, rates rose again to South America, led by strong gains on the busiest southbound routes from Miami, while remaining flat to Europe and lower to China. The index of outbound routes from Chicago (BAI50) plunged by 14.8% week on week, dragged down by steep declines in rates to South East Asia, leaving it sharply lower at 38.2% down year on year. Out of Mexico, rates to Europe were slightly lower week on week, but remained marginally higher year on year.