Market participants are watching for impact on China-U.S. business, given announced removal of de minimis exemption.
Global air freight rates ended a volatile week a little lower, according to the latest data from TAC Index.
"In a week of on-off threats about tariffs on imports to the U.S. – and potential retaliation from trading partners – the overall Baltic Air Freight Index calculated by TAC ended the week to February 10 down by -2.7 percent, leaving it still narrowly ahead by +1.8 percent over 12 months."
Market participants are closely watching for any impact on export business from China to the U.S., given the announced removal of the de minimis exemption for smaller packages of under $800 (since suspended) – plus higher tariffs on goods from China, the update added. "But in what is normally a quiet first week after Chinese New Year, it was hard to confirm any immediate major impact with rates from China slightly down to the U.S. but slightly up to Europe."
The index of outbound routes from Hong Kong was lower -3.7 percent WoW but still slightly up marginally (+0.2 percent) YoY. Outbound Shanghai fell more steeply by -8.4 percent WoW to leave it lower at -9.4 percent YoY. Rates were generally a little lower WoW out of Asia, including Vietnam and India.
Out of Europe, patterns were more mixed – with rates up to the Middle East, unchanged overall to Japan, slightly lower to China but down more to the U.S, the update added. "The index of outbound routes from Frankfurt gained +11.2 percent WoW, led by a big rebound on lanes to Asia following CNY to put it ahead by some +31 percent YoY. Outbound London Heathrow dropped -13.9 percent WoW."
The index of outbound routes from Chicago gained +12.1 percent WoW, led by higher rates to Europe, leaving it ahead by +9.9 percent YoY. Overall rates from the U.S. were rising both to China and to Europe as well as to South America, led by higher rates from Miami, the update added.
Source: https://www.stattimes.com/air-cargo/air-cargo-demand-rebounds-slightly-from-lunar-new-year-dip-1354492
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