Weekly airfreight rate rises mostly ease as US routes gain

Dhaka: Global airfreight rate increases have largely eased as the market adjusts to a new operating environment, though rates out of the United States continue to climb and year-on-year figures remain striking, according to price reporting agency TAC Index.

The global Baltic Air Freight Index (BAI00), calculated by TAC, edged up 0.4% in the week ending May 11. TAC noted the market is seemingly adjusting since the US and Israeli attacks on Iran at the end of February.

Despite the weekly slowdown, the BAI00 stood around 35.8% above year-ago levels, still well exceeding the highest points of recent peak seasons.

In Asia, spot rates out of Hong Kong and India both declined slightly over the week. On transpacific lanes, rates from South Korea to the US still rose. Overall rates on China's busiest outbound lanes to Europe and the US also dipped slightly week-on-week, though they remained significantly elevated year-on-year.

The index for outbound Hong Kong (BAI30) edged up 1.6% week-on-week, putting it 37.9% higher year-on-year. Outbound Shanghai (BAI80) fell 3.6% over the week but remained 36.1% above year-ago levels.

Rates from Vietnam and Bangkok to Europe dipped week-on-week after recent gains, while routes to the US from those origins still rose. From Seoul, Taiwan, and India, rates to Europe continued to climb, albeit with more mixed results toward the US.

Out of Europe, rates softened after weeks of big gains. Transatlantic rates to the US and routes to China, Brazil, Mexico, and Australia all declined week-on-week. Rates to Japan were flat, while those to India, South Africa, and the UAE edged up modestly.

The Frankfurt outbound index (BAI20) edged down 0.7% week-on-week, though it remained 13% higher year-on-year. London Heathrow outbound (BAI40) fell 5.5% weekly but was still up 61.8% year-on-year.

US outbound rates moved in the opposite direction, rising sharply across multiple routes. Double-digit weekly gains were recorded on lanes to Europe, China, and South America, with Miami-originating southbound routes leading the increases.

The Chicago outbound index (BAI50) surged 14.1% week-on-week, placing it 41.4% above year-ago levels.

Rates from Mexico to Europe fell back sharply after recent increases, though they remained elevated on a year-on-year basis.

TAC Index data show that in April, the average global airfreight rate was up 32.7% year-on-year.

V