Overall air freight rates fell slightly last week according to the latest data from TAC Index, the leading rates reporting agency for air freight markets. The global Baltic Air Freight Index (BAI00) calculated by TAC fell -1.6 percent in the week ending November 18, a somewhat weaker figure than many had expected earlier this year for a period when the market is entering the peak of the peak season. However, the global BAI00 is still higher than its level at the same time last year – exactly +1.0 percent – when the market was entering the very clear peak of the peak season.
Market sources noted that spot rates continued to trend upward last week outside China, especially on the trans-Pacific corridors to the US East Coast. The Hong Kong Outbound Roads Index (BAI30) rose again +1.9 percent y/y, with gains in most major corridors putting it narrowly ahead at +0.2 percent y/y. But outbound flights from Shanghai (BAI80) were -2.8 percent lower year-on-year, reflecting declines in most major corridors from there, although they were still ahead +4.0 percent year-on-year. Elsewhere outside Asia, there were further gains on interest rates beyond Vietnam to Europe and the United States. Outside India, prices rose again in the US, but fell in Europe – as was the case in Bangkok as well, although prices remain high year-on-year on routes to Europe from both locations.
Outside Europe, prices generally rose to most major destinations including China and Japan as well as the United States. But the Frankfurt External Roads Index (BAI20) fell slightly by -1.3% y/y to leave it still in negative territory at -4.0% y/y. London Heathrow Airport (BAI40) is down -6.5% y/y after recent gains – although it is still ahead by around +10.1% y/y.
From the Americas, the Chicago Overseas Index (BAI50) also fell sharply after recent gains, falling exactly -10.0% y/y to leave it down -7.0% y/y. Overall interest rates from the United States fell again to both Europe and China, although they continued to rise to South America – especially from Miami, which is by far the largest airport by volume for trade to the South, resulting in higher interest rates for those The trails are a long distance. annually.
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