Global airfreight rates were little changed overall last week, according to the latest data from TAC Index, the leading price reporting agency on airfreight. The global Baltic Air Freight Index (BAI00), calculated by TAC, edged slightly lower by 0.1 percent in the week to July 7, leaving it lower by 7.3 percent over 12 months – with rates overall mostly staying within recent ranges as the market waits to see what happens when the 90-day suspension of higher tariffs on goods entering the US from China, Europe and elsewhere comes to an end.
Rates were little changed overall on the busiest lanes out of China, both to the US and to Europe. That said, the new BAI Spot indices – reflecting purely spot rates out of Hong Kong (which moved to public trials from July 1) – were edging up as the week went on. The overall index of outbound routes from Hong Kong (BAI30) – reflecting the whole spectrum of spot and forward contract business – was also up 2.4 percent WoW, leaving it lower by only 8.2 percent YoY. Outbound Shanghai (BAI80) was also up a little by 0.9 percent WoW, to leave it lower by 9.6 percent YoY. Elsewhere out of Asia, rates from Vietnam were also up WoW, both to the US and to Europe, clawing back some ground after recent falls – but still significantly lower YoY. Rates out of India were little changed.
Out of Europe, rates were lower overall on transatlantic lanes to the US as well as to Japan, though higher on routes to China. Of various new lanes recently added – including to Mexico, Brazil, India, Australia and South Africa – rate patterns were mixed WoW, but all were in positive territory by varying degrees YoY. The index of outbound routes from Frankfurt (BAI20) was slightly lower overall, dropping 0.7 percent to leave it at 7.2 percent YoY – with higher rates to North America offset by falls on rates to Asia. It was a similar story for outbound London (BAI40), which dropped more sharply by 11.5 percent WoW, but is still well ahead by 20.2 percent YoY after large-scale recent gains.
Out of the US, rates were mostly lower WoW, including to Europe and to China as well as to South America – though not on the busiest lanes southbound from Miami, from where rate levels added further to recent gains and remain comfortably ahead YoY. The index of outbound routes from Chicago (BAI50) edged lower by 0.7 percent WoW, to leave it down by 10.5 percent YoY.
