Airfreight market maintains firm tone

Airfreight market maintains firm tone

Global airfreight rates were a little stronger again last week according to the latest data from TAC Index, the leading price reporting agency for airfreight. The overall Baltic Air Freight Index (BAI00) calculated by TAC was up +3.3 percent in the week to 26 August, leaving it ahead by +16.6 percent over 12 months. The latest numbers confirm that the firm tone of the market over the summer – when prices usually dip ahead of peak season – has continued. Sources are divided about whether peak season arrived early – or whether there is a further surge to come due to limited capacity.

Rates remain firm on the big lanes out of China, with the index of outbound routes from Hong Kong (BAI30) up another +1.9 percent WoW to leave it ahead by +23.3 percent YoY. Outbound Shanghai (BAI80) rose +4.3 percentWoW led by higher rates to Europe, pushing its YoY gain to +33.3%. Rates from elsewhere in Asia were more mixed, with rates from India higher again to Europe but lower to the US; while rates from Vietnam were higher to the US but lower to Europe. 

There were big gains on rates out of Europe, with the index of outbound routes from Frankfurt (BAI20) rising +6.7 percent WoW with gains on all major lanes helping cut the YoY decline to -9.3 percent. Outbound London (BAI40) saw an even bigger gain of +8.8 percent WoW led by a sharp rise on lanes to North America which helped trim the YoY fall to only -6.1 percent.

Out of North America the index of outbound routes from Chicago (BAI50) bucked the rising trend with a drop of -4.9 percent WoW leaving a YoY decline of -4.6 percent. Overall rates from the US were rising both to South America and to China, though falling back a little to Europe.

Picture of Edward Hardy

Edward Hardy

Having become a journalist after university, Edward Hardy has been a reporter and editor at some of the world's leading publications and news sites. In 2022, he became Air Cargo Week's Editor. Got news to share? Contact me on Edward.Hardy@AirCargoWeek.com

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