Airfreight rates rose again last week according to the latest data from TAC Index, the leading price reporting agency on air freight markets. The global Baltic Air Freight (BAI00) calculated by TAC gained another plus two percent in the week to November 10, leaving it lower by only minus three point seven percent from 12 months earlier. Sources were viewing this as unexceptional for a period when the market enters the height of peak season, though that was before the fatal crash of a UPS cargo plane in Louisville, which has prompted the grounding of all MD-11 cargo planes operated by FedEx and Western Global as well as UPS. Sources suggest this could have a significant effect on capacity in the coming days, particularly on Transpacific routes, where the majority of MD-11 freighters operate, and could impact rates in the coming days.
Overall rates out of China were actually lower to the US last week, though rising to Europe, as well as out of North Asia in general to most destinations including Australia, India and Mexico. BAI Spot rates, however, were already rising further in the past week from Hong Kong on Transpac as well as on Asia–Europe lanes. The full index of outbound routes from Hong Kong (BAI30) gained plus three point seven percent week on week to leave it only slightly lower at minus one point two percent year on year. Outbound Shanghai (BAI80) dipped a tad by minus zero point two percent week on week to be at minus two point five percent year on year. Elsewhere from Asia, rates were up again from Taiwan and Vietnam, though more mixed from Seoul and Bangkok, firmer on lanes to Europe than to the US, at least ahead of the MD-11 crash. Out of India, by contrast, rates were higher week on week to the US but a little softer to Europe, though still a long way lower year on year.
From Europe, rates were up yet again week on week on Transatlantic lanes to the US, where a significant number of MD-11 cargo planes also operate, as well as to Australia, India, Mexico and South Africa, though also down again on lanes to China, Japan and Brazil. The index of outbound routes from Frankfurt (BAI20) slipped back after recent gains, falling minus six point eight percent week on week to leave it at minus three point four percent year on year. By contrast, outbound London Heathrow (BAI40) rebounded sharply from a big fall the previous week, jumping plus fifteen percent week on week to take it back into positive territory at plus zero point one percent year on year.
Out of the US, rate patterns continued to be more mixed with gains on routes to Europe and South America, but falls again to China and South Korea. The index of outbound routes from Chicago (BAI50) edged up plus two point four percent week on week but languishes at minus twenty-six point eight percent year on year, leaving it still around its lowest point in recent years. From Central America, rates from Mexico to Europe were also up again week on week, though still a little lower year on year.
