Airfreight rates moved sharply higher again last week as the conflict in the Middle East continued to disrupt capacity and push up operating costs across global markets.
According to the latest weekly update from TAC Index, the group’s global Baltic Air Freight Index (BAI00) rose 6.2% in the week to March 23, leaving it 3.1% higher than a year earlier.
TAC said the increase partly reflects rising jet fuel prices, which have more than doubled over the past month based on Platts data. Fuel surcharges are also becoming more widely applied across the market.
The strongest pressure is being felt on cargo moving out of Asia. TAC said rates rose sharply on major lanes from China to both Europe and the United States, while spot prices from Hong Kong continued climbing back toward peak-season levels. Rates also increased significantly from India and South Korea.
Hong Kong’s overall index, which combines both contract and spot prices, was up 3.7% week over week and stood 2.5% above the level of a year ago.
Shanghai posted an even steeper gain, with outbound rates jumping 13.9% week over week, leaving the market 5.4% higher year over year.
TAC also reported substantial weekly gains out of Seoul, Bangkok and India, where the market has been heavily affected by capacity losses through the Middle East. Taiwan also recorded further increases.
Vietnam was one of the few exceptions, with rates edging down slightly week over week, although they remain significantly higher than a year ago on Europe-bound routes.
As expected, rates to and from the Gulf region have risen sharply amid capacity shortages caused by airspace closures.
Out of Europe, prices also moved up strongly across most major trade lanes, including busy transatlantic routes to the United States as well as services to China, Japan, India, Australia, Mexico and South Africa.
North America presented a more mixed picture. TAC said rates from the region increased on lanes to China and other parts of Asia, while transatlantic services to Europe and routes to South America weakened.
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