Global air freight rates remained broadly stable in the week to March 9 despite escalating geopolitical tensions and widespread airspace disruptions across the Middle East, according to the latest data from the TAC Index.
The global Baltic Air Freight Index (BAI) inched up by 0.2 percent week-on-week, although it remained slightly below last year’s level, down 1 percent year-on-year. The modest overall movement came even as rising crude oil and jet fuel prices and the closure of several Middle Eastern airspaces created uncertainty for airlines and logistics operators.
However, the relatively steady global index masked significant variations across individual trade lanes, with freight rates from Asian hubs — particularly Hong Kong and India — climbing sharply on routes to Europe.
Outbound air freight rates from Hong Kong rose 8.7 percent week-on-week, supported by stronger pricing to both Europe and the United States, though the index still remained 1.3 percent lower than a year earlier. Shanghai also recorded higher rates on Europe-bound routes, but steep declines on trans-Pacific lanes pushed its overall index down 9.7 percent from the previous week, leaving it only marginally higher year-on-year.
Across the wider Asian market, rates to Europe surged from several origins, including Vietnam, Bangkok, Taiwan and India, with double-digit percentage increases recorded during the week. Shipments to the United States from most of these locations also moved higher.
One exception was Seoul, South Korea, where overall rates declined week-on-week on both major corridors, although spot prices strengthened toward the end of the reporting period.
From Europe, freight rate trends were mixed. Modest declines were seen on transatlantic routes to North America and on lanes to China, Japan, Mexico and Brazil. These were partly offset by higher rates on services to the UAE, India, Australia and South Africa.
The index for outbound routes from Frankfurt fell sharply by 13.4 percent week-on-week, reflecting declines across most key lanes including services to the United States and China. This left Frankfurt’s index down 18.8 percent compared with the same period last year.
In contrast, London Heathrow recorded strong gains, largely driven by higher rates to the United States. The outbound index from the UK hub rose 8.8 percent week-on-week and was up 41.6 percent year-on-year.
Rates from North America also showed a volatile pattern. While transatlantic shipments to Europe softened, increases were recorded on routes to China, South Korea and South America.
The outbound index from Chicago rebounded strongly with a 19.9 percent week-on-week rise after recent declines, narrowing its year-on-year drop to 10.8 percent. Meanwhile, freight rates from Mexico to Europe edged slightly lower during the week.
