Global air freight rates rose strongly again last week as the market headed for what is traditionally considered the highest point of the peak season according to the latest data from the TAC Index, the leading price reporting agency for air freight markets. The overall Baltic Air Freight Index (BAI00) calculated by TAC was up +4.6% in the week ending 2 December, although it is still slightly lower than it was at this point last year – by -1.1% y/y – when There was a particularly big climax. High season. Sources noted that spot rates were still rising strongly over the past week, but the index averages did not rise much due to the large amount of “controlled capacity” pre-booked by freight forwarders.
Prices outside China rose again to Europe and North America. The Hong Kong Outbound Route Index (BAI30) rose again by 2.8% y/y, with gains in most major corridors – although still slightly below last year’s level of -1.4% y/y. The Shanghai Outbound Index (BAI80) rose 6.9% y/y, driven by big gains in North America, although it was also still slightly lower y/y – -0.7%. Prices also rose again out of Vietnam to both Europe and the US, and there were also significant rises on corridors to Europe from other airports in Asia such as Bangkok and Seoul – although prices from India were slightly lower.
At the same time, there has also been a significant rise in prices outside Europe, especially on the transatlantic corridors to the United States – perhaps partly due to some weather disturbances – but less so for China or Japan. The Frankfurt External Roads Index (BAI20) jumped +13.8% y/y, finally pushing it back into positive territory at +6.3% y/y. Following recent gains, London Heathrow Airport (BAI40) is down -1.0% y/y – but still ahead +13.8% y/y.
From the Americas, the Chicago Outbound Roads Index (BAI50) also bucked the uptrend, falling -2.4% y/y despite some big gains on routes to Europe, leaving it again down around -18.0% y/y. Aggregate interest rates were rising again from the United States to Europe and South America – especially from Miami, which does a large proportion of that trade – but not to China.
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