Airfreight rates declined last week, according to the latest data from TAC Index, the leading price reporting agency for air freight markets. The global Baltic Air Freight Index (BAI00), calculated by TAC, dropped by 3.5 percent in the week to 28 April. However, it remained narrowly ahead, up 0.8 percent compared to the same period twelve months earlier – a time when the market was on the rise, driven by the e-commerce boom. In addition, jet fuel prices have decreased by approximately 14.6 percent over the same twelve-month period, according to the latest data from Platt’s – indicating that most air cargo carriers should still be experiencing improved profitability.
Industry stakeholders have been attempting to navigate volatility and disruption in global trade caused by the ongoing uncertainty surrounding new tariffs into the United States – as well as the planned end of the de minimis exemption for small packages valued under 800 US dollars, due to take effect on 2 May. While some expected a potential surge in shipments ahead of this deadline, overall rates out of China declined slightly again last week to both Europe and the United States. The index of outbound routes from Hong Kong (BAI30) slipped by 1.2 week-on-week, leaving it down 3.6 percent year-on-year. Outbound Shanghai (BAI80) fell by 6.1 percent week-on-week, pushing it into negative territory year-on-year by 4.8 percent. Rates were also somewhat lower week-on-week on lanes from Vietnam, as well as from Bangkok and Seoul to Europe – although rates from India to the United States increased again.
Out of Europe, rates rose slightly overall to China and Japan but declined on most transatlantic lanes to North America. The index of outbound routes from Frankfurt (BAI20) dropped sharply after recent gains, falling by 12 percent week-on-week – although still comfortably ahead by 7.9 percent year-on-year. Outbound London Heathrow (BAI40) also experienced a sharp decline of 13.9 percent week-on-week, pulled down by lower rates to South East Asia, the Middle East, and the United States, leaving it down by 13.2 percent year-on-year.
From the Americas, despite steep falls on lanes to China, overall rate patterns defied the global downward trend – buoyed by gains on routes to Europe and South America. The index of outbound routes from Chicago (BAI50) surged by 14.1 percent week-on-week, placing it 61.9 percent higher year-on-year from the relatively subdued levels of twelve months ago.
