Global airfreight prices have continued their recent upward momentum, according to the latest data from TAC Index, the leading price reporting agency (PRA) on airfreight. The overall Baltic Air Freight Index (BAI00) calculated by TAC, edged up a further +0.2 percent in the week to 3 June, putting it ahead by +6.4 percent over 12 months – continuing the recent trend of rates staying strong through what is normally a season of the year when rates ease lower due to more capacity coming on stream.
Air cargo news was dominated by a reported crackdown on compliance with rules on e-commerce into the US, with reports suggesting disruption for customs brokers – though sources told TAC the reports were overblown, with most big brokerage houses already having effective compliance in place. The index of outbound routes from Hong Kong (BAI30) edged up a further +1.0 percent WoW to put it ahead by +15.0 percent YoY, though sources said the modest rise in average rates to Europe was not yet reflective of the underlying strength in the market. Outbound Shanghai (BAI80) was lower by -1.8 percent WoW although still ahead by a chunky +41.4 percent YoY – with rates to the US falling but rising to Europe. Rates out of India were also rising strongly to Europe, and up again generally out of Vietnam.
Out of Europe, there was a rebound after last week’s fall in rates from Frankfurt (BAI20) with a gain of +6.6 percent WoW, boosted by strong increases to China and to South East Asia, cutting the YoY decline to -26.0 percent. But outbound London (BAI40) dropped again WoW by another -3.7 percent, with falls on most major lanes pushing the YoY fall to -39.8 percent.
From the Americas, rates from Chicago (BAI50) edged up a further +1.3 percent WoW, helping trim the YoY decline to -17.7 percent. Overall, rates from the US were rising across the board – to Europe and to South America as well as to China.