Global airfreight rates trended lower again last week, according to the latest data from TAC Index, the leading price reporting agency on air freight. The global Baltic Air Freight Index (BAI00) calculated by TAC dropped another -4.7 percent in the week to 20 January as average cargo prices continued to fall following the end of the recent peak season.
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Nevertheless, rates remain comfortably above where they were a year ago – up by +16.6 percent YoY, with the data showing little sign yet of any collapse in e-commerce activity as some recent reports have predicted. Indeed, market sources indicate a renewed rise in spot rates since late last week into what some dub a ‘mini peak’ ahead of Chinese New Year.
Average rates on the busiest lanes out of China continued to fall both to Europe and the US. The index of outbound routes from Hong Kong (BAI30) slipped -3.0 percent WoW, though still up +14.0 percent YoY. Outbound Shanghai (BAI80) shed -5.4 percent WoW, though still ahead by +12.5 percent YoY. Rates from Vietnam were also lower both to Europe and the US, while from India rates were also lower to Europe though up to the US – and still much higher YoY in both directions. From both Bangkok and from Seoul, rates to Europe were rising again.
Rates were lower WoW for all the major outbound indices – not least from Europe, where rates were down both to China and Japan, though on the up again to the US. The index of outbound routes from Frankfurt (BAI20) dropped -5.9 percent WoW, cutting recent gains to leave the YoY increase at +30.3 percent. Outbound London (BAI40) dropped an even steeper -8.8 percent WoW, though is still up YoY by +13.4 percent.
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From the Americas, the index of outbound routes from Chicago (BAI50) ended a series of recent gains with a drop of -3.6 percent WoW, though still ahead YoY by a healthy looking +38.3 percent. Overall rates from the US were rising on most major lanes including to Europe, to China and to South America.
