Global air freight rates experienced a slight decline last week, according to the latest data from the TAC Index. The Baltic Air Freight Index (BAI00) calculated by TAC showed a 0.6% decrease for the week ending June 9, reflecting a 4.8% drop compared to the same period last year.
Despite these reductions, the market continues to demonstrate relative stability. Current rates remain resilient amidst ongoing uncertainties regarding tariffs and trade policies, especially when contrasted with last year’s figures, which were bolstered by booming e-commerce demand and significantly lower jet fuel prices.
Performance by Region
Asia
Rates on major export routes from China fell slightly week-on-week (WoW) for shipments to both Europe and the United States. Spot rates from Hong Kong, as tracked by the new BAI Spot indices (soon to enter public trials), also declined over the week.
However, the broader index covering Hong Kong’s outbound routes, which incorporates both spot and contracted shipments, rose by 0.8% WoW. Despite this modest increase, the index remains 7.6% lower year-on-year (YoY).
In Shanghai, rates saw a marginal decline of 0.9% WoW, leaving them 5.0% down compared to last year.
Elsewhere in Asia:
Vietnam: Rates rose slightly on shipments to Europe but continued to decline on routes to the U.S., falling significantly YoY.
India: Rates dropped in both directions, marking substantial YoY declines.
Bangkok and Seoul: Rates decreased for Europe-bound shipments but remain significantly higher YoY due to robust demand and rising volumes.
Europe
From Europe, air cargo rates painted a mixed picture:
Rates increased WoW on routes to Japan and rose slightly to the United States, showing strong YoY growth.
Rates to China, however, declined again.
The Frankfurt index dipped 1.7% WoW but remained 0.7% higher YoY, driven by strong demand on transatlantic lanes.
At London Heathrow, rates fell by 0.7% WoW but retained a YoY increase of 3.6%, supported by significant growth in shipments to the Middle East.
North America
In North America, rates rose WoW on lanes to Europe and South America, driven by continued gains from Miami. However, rates for shipments to China declined.
The update underscores a trend of gradual reductions across various routes, yet the market remains robust in specific segments, supported by strategic trade patterns and regional demand.
Source: https://www.stattimes.com/air-cargo/air-cargo-rates-drift-lower-tac-index-1355541
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