Shanghai routes now exceed last peak season high with 6.6% year on year gain while Hong Kong rates show signs of levelling after recent sharp increases
Global airfreight rates continued rising last week, although they are not quite level with rates seen at the same time last year, the latest data from TAC Index shows.
The global Baltic Air Freight Index (BAI), calculated by TAC, gained a further 6.5% in the week to 8 December. This was another significant increase though it was still down 2.3% year on year. Last year, reported TAC Index, there had been an even steeper peak season surge.
There were particularly strong gains last week on the busiest lanes out of China both to Europe and the US, as well as on other lanes out of North Asia to India and Mexico. After a sharp rise in recent weeks, there were signs BAI spot rates out of Hong Kong were starting to level off in recent days.
But the index of outbound routes from Hong Kong – reflecting the full spectrum of spot and forward rates – gained a further 2% week on week to leave it at -5.9% year on year. Plus, outbound Shanghai gained another 7.7% week on week to leave it up 6.6% year on year – now above the last peak season high.
Rates were also firmer again on various other lanes out of Asia – including from Vietnam and from Seoul both to Europe and the US. But more mixed from other locations – with rates from both Taiwan and from India higher to the US but lower to Europe, and lower from Bangkok in both directions.
Rates from Europe did not move much during the week, but edged slightly higher again overall – with further modest gains on Transatlantic lanes to the US as well as to India, Brazil and the UAE, but flat to China and showing slight declines to Japan, Australia and South Africa.
The index of outbound routes from Frankfurt gained some +9.6% week on week but remained a long way lower than a year earlier at minus 23.7% year on year. By contrast, outbound London Heathrow gave back some of its recent gains, down 8.4% week on week but remaining up 2.5% year onn year.
Rates out of North America rebounded strongly following the Thanksgiving holiday and some recent weather disruptions, with big gains on lanes to China, Europe and South America – though still significantly lower year on year on most major routes.
The index of outbound routes from Chicago bounced sharply from recent falls, led by large gains on routes to Europe and to South East Asia, up 46.7% week on week to propel it back into positive territory at with an increase of 12.2% year on year. Rates out of Mexico to Europe were little changed.
