Global air freight rates edged lower overall last week, according to the latest data from the TAC Index, the leading price reporting agency for air cargo markets. The global Baltic Air Freight Index (BAI00) fell by 3.3% in the week to January 19, leaving it down just 3.6% compared with the same period last year.
Rates on the busiest export routes from China dipped marginally week on week to both Europe and the United States, but remained comfortably higher on a year-on-year basis. Spot rates out of Hong Kong continued their downward trend following the end of the recent peak season, with no indication yet of a “mini-peak” ahead of the Chinese New Year, which falls in mid-February this year. The Hong Kong outbound index (BAI30) slipped only 0.4% week on week, supported by strong regional demand in Southeast Asia, and stood 2.1% lower year on year. Shanghai outbound rates (BAI80) declined 2.2% week on week but were still 7.4% higher than a year earlier.
From Southeast Asia, air freight rates fell sharply to both Europe and the US from Vietnam and Bangkok, pushing them significantly lower year on year. Rates from Taiwan and Seoul were also mostly lower week on week, though they remained well above last year’s levels. Out of India, rates were largely unchanged week on week but continued to trail year-on-year levels by a wide margin.
European export rates softened on major transatlantic routes to the US after recent gains and were also lower week on week to Mexico and South Africa, although they remained well above year-ago levels on those lanes. In contrast, rates increased week on week on routes to China, Japan, India and Brazil. The Frankfurt outbound index (BAI20) dropped 7.5% week on week, leaving it down 12.2% year on year, while London Heathrow (BAI40) fell 7.4% week on week but remained 1.6% higher than a year ago.
From the United States, air freight rates rose again to South America, driven by strong gains on key southbound routes from Miami. Rates were flat to Europe and lower to China. The Chicago outbound index (BAI50) plunged 14.8% week on week, weighed down by steep declines to Southeast Asia, leaving it 38.2% lower year on year. From Mexico, rates to Europe edged down week on week but stayed marginally higher compared with last year.