Global air freight rates edged up marginally (1.7 percent) during the week to February 17, according to the latest data from TAC Index.
The global Baltic Air Freight Index is now up 12.8 percent over 12 months, says the update. “The relatively firm tone to the market confounds some expectations that fears over rising tariffs and the threatened end to the de minimis exemption for smaller parcels entering the U.S. might hit volumes and rates hard, amid reports of some e-commerce flights already getting cancelled. Rates reported so far in the period post Chinese New Year do not reflect anything so dramatic, at least not yet.”
Overall rates out of China were, in fact, slightly higher last week to the U.S. and Europe, although the index of outbound routes from Hong Kong – the world’s busiest cargo airport by volume – was lower by -0.9 percent WoW, leaving its gain at +14.2 percent YoY.
Outbound Shanghai gained 8.1 percent WoW, helping push its gain back up to +10.7 percent YoY. Elsewhere from Asia, rates were also higher out of both India and Vietnam to Europe and to the U.S, the update added.
“Out of Europe, overall rates were rising on most major lanes including to China and to Japan as well as to the U.S. The index of outbound routes from Frankfurt notched another chunky gain of +6.2 percent WoW, taking its rise to an impressive looking +30.4 percent YoY.
However, outbound London Heathrow plunged -10.3 percent WoW, dragged down by lower rates to North America, though still in positive territory by +4.8 percent YoY.”
The index of outbound routes from Chicago also fell by 5.9 percent WoW, with rates falling both to Europe and to Asia. Overall rates from the U.S. were slightly higher again to Europe while slightly lower both to China and to South America, though not from Miami, which does the lion’s share of air cargo business between the U.S. and Latin America, the update added.
