Global air freight rates edged slightly lower overall last week, according to the latest data from TAC Index. The global Baltic Air Freight Index slipped by -0.3 percent in the week to June 23, leaving it lower by six percent over 12 months.
“The overall decline came despite disruption and cancellations to flights across the Middle East due to the Israel-Iran conflict plus a rise in spot rates on the busiest lanes out of China, sources said as well as in jet fuel prices.”
Overall rates out of China were slightly lower again both to the U.S. and Europe, the update added. “Nevertheless, the index of outbound routes from Hong Kong was higher by +0.4 percent WoW to leave it at -9.8 percent YoY with the new spot indices out of Hong Kong set to move from private to public trials from July 1 also gaining ground over the week. Outbound Shanghai dipped by -2.7 percent WoW to leave it at -8.5 percent YoY. Elsewhere out of Asia, overall rates from India were also lower again WoW both to Europe and to the U.S. while rates from Vietnam were lower to the U.S. though higher to Europe.”
From Europe, rates were firm overall including on Transatlantic lanes to the U.S. as well as to China and to Japan. “The index of outbound routes from Frankfurt gained +5.7 percent WoW to leave it ahead by +2.7 percent YoY. Outbound London Heathrow fell back a little by -5.2 percent WoW – reversing some of the previous week’s massive gain – but was still ahead by a healthy +20.8 percent YoY.”
Out of North America, rates were higher on lanes to Europe and to China. The index of outbound routes from Chicago gained +2.1 percent WoW to leave it lower by -4.6 percent YoY, the update added.