• The Baltic Air Freight Index (BAI00) fell 3.1 percent week-on-week to 20 July, marking a fourth consecutive weekly decline, although rates remained 17.0 percent higher year-on-year despite renewed Middle East tensions and rising jet fuel prices.
• Rates from major Asian hubs including Hong Kong and Shanghai declined, with Hong Kong outbound rates falling 6.3 percent week-on-week. However, some markets, particularly on Asia–US lanes from Bangkok, Vietnam, Malaysia and Korea, recorded increases, supported by stronger transpacific demand.
• European outbound rates were generally lower, with Frankfurt declining 5.2 percent week-on-week, while US outbound rates softened on key Europe and China routes but remained elevated overall, with Chicago rates up 29.7 percent year-on-year.

Global airfreight rates continued to trend lower last week – with the re-escalation of hostilities in the Persian Gulf and a renewed spike in jet fuel prices seemingly yet to feed through to the market – according to the latest data from TAC Index, calculating agent for the Baltic Air Freight indices. The global Baltic Air Freight Index (BAI00) calculated by TAC fell for a fourth successive week, dipping -3.1 percent over the seven days to July 20, leaving it up +17.0 percent from 12 months earlier. That was despite a sharp escalation in the rate of increase of jet fuel prices in recent days – putting them up a whopping +65.9 percent YoY on July 17, according to Platts data cited by the IATA Jet Fuel Price Monitor. 

Rates on the busiest lanes out of China fell again WoW both to Europe and the US. BAI Spot rates also fell during the week from Hong Kong, Shanghai and South Korea – though were already firming up again from India, particularly on lanes to Europe. The index of outbound routes from Hong Kong (BAI30) – reflecting the full spectrum of spot and forward contract rates on multiple lanes – dropped some -6.3% WoW, cutting its gain over 12 months to +16.7 percent. Outbound Shanghai (BAI80) dipped a more modest -1.1 percent WoW to leave it at +23.9 percent YoY. However, rates from elsewhere in Asia were firmer WoW, particularly on Transpacific routes – with gains from Bangkok, Vietnam, Malaysia and Korea on lanes to the US, but mostly declines on lanes to Europe. One exception was Taiwan – from where rates have been at elevated levels for most of the past year, driven by booming semiconductor exports – but where rates fell back a little last week both to Europe and the US. 

Out of Europe, rates were also mostly a little lower – though only narrowly down on the busiest Transatlantic lanes to North America, and also falling on lanes to Australia, Brazil, Mexico and India. Rates from Europe were rising WoW to China, Japan and South Africa. The index of outbound routes from Frankfurt (BAI20) declined -5.2 percent WoW to leave it at +9.7 percent YoY. Outbound London Heathrow (BAI40) gained +1.2 percent WoW, though remained in negative territory at -6.4 percent YoY. 

From the US, rates were declining WoW on lanes to Europe and the UK as well as to China – but also slightly higher to South America as well as to Korea. The index of outbound routes from Chicago (BAI50) gained another +2.5 percent WoW to leave it at +29.7 percent YoY. Rates from Mexico to Europe were also up again WoW to leave them well ahead YoY. 

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