- Global air freight rates rose 0.8% last week, according to the TAC Index, as the market moved through the first phase of the typical peak season around Thanksgiving and Black Friday.
- The gains were driven by strong interest rate increases from China to both Europe and the US, especially outside Shanghai (+2.7% y/y) and Hong Kong (+1.8% y/y). Meanwhile, rates from India fell in both directions, and European outbound rates showed mixed results – with Frankfurt down -4.1% y/y and London Heathrow slightly lower at -1.6% y/y.
- Rates for outbound flights from the US continued to decline, particularly from Chicago (-6.1% y/y). Despite the current gains, the overall global Baltic air freight index is still down 3.3% compared to the same period last year.
Global air freight rates rose again last week, as the market completed the first phase of its usual peak season rally on Thanksgiving and Black Friday, 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 rose +0.8% in the week ending December 1, leaving it down but only -3.3% from the previous 12 months when there was a significant rise in the peak season.
The market rose again thanks to further gains on the largest corridors out of China to Europe and the United States. Despite a brief pause over Thanksgiving, BAI spot rates from Hong Kong to the US and Europe continued to rise sharply during the week. The full Hong Kong outbound road index (BAI30) – which reflects the full range of spot and forward exchange rates paid – achieved a more modest growth of +1.8% y/y to leave it down at -3.4% y/y. Outbound flights from Shanghai (BAI80) also rose by 2.7% y/y leaving it in the lead at +2.4% y/y. Prices from Vietnam changed little, while prices from Bangkok and Seoul increased to the United States but decreased to Europe. From Taiwan, prices rose to Europe but fell to the United States. From India, rates were lower in both directions.
Price patterns from Europe were also mixed, with further gains on the trans-Atlantic corridors to the US as well as to China, Japan and Mexico – but falling on the corridors to Australia, Brazil, India, South Africa and the UAE. The Frankfurt External Roads Index (BAI20) fell -4.1% y/y to leave it struggling at -17.0% y/y from a year ago – when it was entering the apparent peak of the peak season. Heathrow International Airport (BAI40) also declined although it was only down -1.6% y/y – leaving it still comfortably ahead at +7.3% y/y.
Fares from the US continued to fall – with declines again on routes to Europe, China and South America, despite a renewed rise on the busier southbound lanes from Miami. The Chicago Outbound Index (BAI50) fell -6.1% y/y to leave it down at -17.1% y/y. Rates from Mexico to Europe — one of more than 20 routes added to the data set since last July — also fell sharply after recent gains, pushing them back into negative territory on an annual basis.
Global air freight rates rose again last week, as the market completed the first phase of its usual peak season rally on Thanksgiving and Black Friday, 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 rose +0.8% in the week ending December 1, leaving it down but only -3.3% from the previous 12 months when there was a significant rise in the peak season.
The market rose again thanks to further gains on the largest corridors out of China to Europe and the United States. Despite a brief pause over Thanksgiving, BAI spot rates from Hong Kong to the US and Europe continued to rise sharply during the week. The full Hong Kong outbound road index (BAI30) – which reflects the full range of spot and forward exchange rates paid – achieved a more modest growth of +1.8% y/y to leave it down at -3.4% y/y. Outbound flights from Shanghai (BAI80) also rose by 2.7% y/y leaving it in the lead at +2.4% y/y. Prices from Vietnam changed little, while prices from Bangkok and Seoul increased to the United States but decreased to Europe. From Taiwan, prices rose to Europe but fell to the United States. From India, rates were lower in both directions.
Price patterns from Europe were also mixed, with further gains on the trans-Atlantic corridors to the US as well as to China, Japan and Mexico – but falling on the corridors to Australia, Brazil, India, South Africa and the UAE. The Frankfurt External Roads Index (BAI20) fell -4.1% y/y to leave it struggling at -17.0% y/y from a year ago – when it was entering the apparent peak of the peak season. Heathrow International Airport (BAI40) also declined although it was only down -1.6% y/y – leaving it still comfortably ahead at +7.3% y/y.
Fares from the US continued to fall – with declines again on routes to Europe, China and South America, despite a renewed rise on the busier southbound lanes from Miami. The Chicago Outbound Index (BAI50) fell -6.1% y/y to leave it down at -17.1% y/y. Rates from Mexico to Europe — one of more than 20 routes added to the data set since last July — also fell sharply after recent gains, pushing them back into negative territory on an annual basis.
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