Freight rates have been declining in recent weeks as US tariffs on goods from China and an end to the de minimis exemption for goods from the country kick in.
The latest figures from TAC Index show that week-on-week rate declines were last week recorded on “all the outbound indices for major airports around the world”.
The global Baltic Air Freight Index calculated by TAC fell 4.5% in the week to May 5, while year on year it is down by 5.7%.
”Overall rates out of China have not yet fallen as much as some feared, with rates to Europe slightly up again over the latest week – though down on lanes to the US,” TAC said.
The index of outbound routes from Hong Kong dropped another 3.3% week on week and is down around 7.4% year on year.
Sources have indicated that spot rates out of Hong Kong have continued to fall this week.
Outbound Shanghai was down 2.4% compared with a week earlier and is down by 8.6% year on year.
"Rates out of India were also falling to the US, while rates out of Vietnam and Bangkok dropped on lanes to Europe."
Rates are also down from Europe to the US as the European Union threatens tariffs in relation to those implemented by the US, while rates are also down to China.
"The index of outbound routes from Frankfurt fell 5% week on week, with falls on all major lanes, though it remains slightly up by 1.6% year on year.
"Despite gains on lanes to the Middle East, outbound London Heathrow fell even more steeply by 10.1% week on week, dragged down by sharp falls on lanes to Southeast Asia – leaving it languishing at 26.8% down year on year."
From the US, rates were falling to Europe and South America, but are slightly up to China. However, they remain up year on year.
