Global air freight rates experienced broad-based increases last week, with all major cargo hubs registering gains, according to the latest market data released by TAC Index, a leading price reporting agency for air cargo.
The Baltic Air Freight Index (BAI00)—a global benchmark calculated by TAC—rose by 3.4% in the week ending July 14, 2025, reflecting a sustained upswing in rates despite the traditionally slower summer season. Notably, the index is now only 3.1% lower year-on-year (YoY), indicating that the market has remained largely resilient in the face of renewed tariff threats on goods entering the United States.
Asia Origins: China Drives Weekly Rate Gains
Airfreight rates on the key China–Europe and China–U.S. lanes registered upward momentum. While Hong Kong's BAI Spot Index—which tracks purely spot market rates—remained relatively stable during the week, the comprehensive outbound Hong Kong index (BAI30), encompassing both spot and contract freight, increased by 1.8% week-over-week (WoW). As a result, the index now stands 6.7% lower YoY, continuing its recovery trajectory.
In Shanghai, the outbound BAI80 index posted a more robust 4.1% WoW increase, narrowing the YoY deficit to just 3.0%.
Elsewhere in Asia:
Europe Origins: Mixed Weekly Movement, Strong Annual Growth
Out of Europe, rates were relatively flat week-on-week on outbound lanes to the U.S., China, and Japan. However, performance remains strong on recently added lanes to Australia, Brazil, Mexico, India, and South Africa, all of which posted positive YoY growth.
The Frankfurt outbound index (BAI20) rose by 1.5% WoW, driven by higher pricing on U.S.-bound shipments. Nonetheless, it remains 2.4% lower YoY.
The London outbound index (BAI40) continued its upward trajectory, increasing by 11.4% WoW, with strong growth particularly on transatlantic routes. The index now shows an impressive 24.1% YoY increase, indicating robust long-haul demand and pricing power from the U.K.
U.S. Origins: Rate Recovery Gains Momentum
Rates from the United States also strengthened during the week across lanes to Europe, China, and South America. The Chicago outbound index (BAI50) advanced by 2.1% WoW, although it remains 7.3% lower YoY, reflecting the lingering effects of earlier demand softness.
Market Outlook: Resilience Amid Seasonal and Policy Headwinds
Despite entering what is traditionally a low-demand summer period, the air cargo market is exhibiting unexpected resilience. Rate increases across all major origin hubs suggest that capacity adjustments, pre-tariff positioning, and supply chain recalibrations are continuing to support upward pricing momentum.
With the prospect of additional U.S. tariffs looming and ongoing shifts in global trade flows, stakeholders should remain attentive to further pricing volatility, especially on strategic corridors like Asia–North America and Europe–U.S.
Source: https://www.stattimes.com/air-cargo/global-air-freight-rates-increased-all-around-the-world-last-week-1355857
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