Global airfreight prices moved higher again in the week ending 6 April, as the market continued to feel the combined impact of elevated jet fuel costs and limited capacity in several locations.
According to TAC Index, the global Baltic Air Freight Index (BAI00) rose by 5.1% week on week and was 15.8% higher than a year earlier. The index provider said market sources do not expect conditions to normalise any time soon, even in the event of a rapid end to the conflict in the Gulf.
The strongest pressure remained on the busiest China-origin corridors. Rates on the main lanes linking China with Europe and the US were up by almost 30% year on year in both directions. From Hong Kong, the outbound index (BAI30) increased 8.6% over the week and stood 13.4% above last year’s level. Shanghai outbound (BAI80) was up 6.4% week on week and 21.3% year on year.
TAC also pointed to notable weekly gains from Southeast Asia, especially on services originating in Bangkok and Vietnam. In North Asia, the picture was more subdued. Rates from Seoul and Taiwan were either broadly stable or lower over the week, although they still remained above year-ago levels, particularly on services to Europe.
India has also seen strong spot market escalation since the outbreak of the Middle East conflict. TAC noted that this was reflected in broader index gains from India as overall rates to both Europe and the US continued to move upward week on week.
From Europe, the trend was more mixed. Additional gains on transatlantic routes to the US, and on services to Japan, Brazil, South Africa and the UAE, were partly offset by declines to China, India, Mexico and Australia. The outbound Frankfurt index (BAI20) slipped 2.1% week on week, though it remained 6.1% higher year on year. London Heathrow outbound (BAI40) also edged down by 0.3% over the week, but was still up around 48.8% compared with the same period last year following strong gains in recent months.
From the US, rate development was also uneven. Prices eased modestly on lanes to Europe and China, while services to South America, the UK and South Korea recorded gains. The Chicago outbound index (BAI50), often one of the more volatile indicators, rose 1.9% during the week, leaving it narrowly down 0.4% year on year.
Meanwhile, rates from Mexico to Europe jumped again over the week, pushing them well above last year’s levels.
