Rates climb amid uncertain outlook

Global airfreight rates have kept on rising despite the very mixed outlook for trade and markets according to the latest data from TAC Index, the leading price reporting agency for air freight markets. The global Baltic Air Freight Index (BAI00) calculated by TAC was up another +2.3% WoW over the week to March 24, leaving it ahead by +3.5% YoY over the past 12 months.

Rates out of China were higher again last week on lanes both to Europe and to North America, leaving them still close to levels of 12 months ago. The index of outbound routes from Hong Kong (BAI30) was narrowly lower by -0.1% WoW, but still ahead by +3.1% YoY, with sources suggesting that spot rates had continued to rise. Outbound Shanghai (BAI80) was up a further +6.2% WoW – leaving it up by similar +3.4% YoY.  Elsewhere from Asia trends in rates continued to be more mixed – with falls on lanes to Europe from Vietnam, Bangkok and Seoul, and falls this time too on lanes from India both to Europe and the US. By contrast, rates from Vietnam to the US continued to increase.

From Europe, rates were generally falling last week, including on lanes to China and Japan as well as to the US. However, the index of outbound routes from Frankfurt (BAI20) bounced back from recent falls with a gain of +9.5% WoW, boosted by gains on most major lanes, pushing that index back into positive territory at +10.3% YoY. By contrast, outbound London Heathrow (BAI40) fell back again after a surge the previous week, a drop of -15.6% WoW pulling it down to -8.7% YoY.

Out of the Americas, the index of outbound routes from Chicago (…