• Global air freight rates increased 0.2 percent in the week to September 14, with the Baltic Air Freight Index standing 20.2 percent higher year on year, according to TAC Index.
• TAC Index said the impact of rising crude oil and jet fuel prices has yet to be fully reflected in global rates, potentially adding upward pressure ahead of the traditional peak season.
• Frankfurt outbound rates rose 3.2 percent week on week, while London Heathrow fell 9.1 percent and Chicago jumped 15.1 percent.

Global airfreight rates edged up again last week according to the latest data from TAC Index, the leading price reporting agency on air freight markets and calculating agent for the Baltic Air Freight indices. The global Baltic Air Freight Index (BAI00) gained 0.2 percent over seven days to September 14, with the impact of surging crude oil and jet fuel prices in recent days yet to be reflected in rates globally – but with the index already at elevated levels of 20.2 percent year-on-year. With crude oil back over $100 per barrel and jet fuel prices now up over 100 percent YoY according to the latest Platts data, it seems likely rate levels will come under renewed upward pressure well before we reach traditional peak season in the coming weeks.

Rates on the busiest lanes out of China were little changed overall WoW – up a bit to Europe and slightly lower to the US, though still up much more YoY on Transpacific lanes. BAI Spot rates out of Hong Kong were also little changed WoW, while the full index of outbound routes from Hong Kong (BAI30) – reflecting the whole spectrum of spot and forward rates being paid – was slightly higher by 0.2 percent WoW, leaving it at 18.5 percent YoY. Outbound Shanghai (BAI80) was a little down by 0.7 percent WoW, leaving it also at 18.5 percent YoY. Out of Seoul, rates overall were slightly lower – though BAI Spot levels have been moving sharply higher in recent days. From Taiwan, rate patterns were more mixed – with falls on lanes to Europe but renewed rises to the US. From South East Asia, rates were generally rising WoW out of Bangkok and Vietnam. Rates from India were a little lower WoW to Europe and higher to the US – but still way up both ways YoY.

Out of Europe rates were generally a little lower WoW, including on Transatlantic routes to the US as well as to China, Brazil, Australia, UAE and South Africa – though also higher on routes to India, Japan and Mexico. The index of outbound routes from Frankfurt (BAI20) gained 3.2 percent WoW to leave it at 30.2 percent YoY. By contrast, outbound London Heathrow (BAI40) fell for a second successive week, dropping another 9.1 percent WoW to leave it at -1.9 percent YoY.

From the US, rates were also a little weaker overall, with falls WoW on routes to Europe and the UK as well as to South America. But there were also some gains WoW on routes to Asia including to China, Korea and Malaysia – leaving all lanes still higher YoY. The index of outbound routes from Chicago (BAI50) jumped by 15.1 percent WoW, boosted by big gains to South East Asia – leaving it up some 59.2 percent YoY compared with low levels last year when volumes were hit by tariff issues. Rates from Mexico to Europe were also up sharply WoW, and now much higher YoY.

Go to TACIndex.com for all the specific data on individual lanes – including new lanes now added from the Greater Bay Area to Dubai, Kuala Lumpur, Seoul and Tokyo. You can also find information on the new TAC Terminal, an ‘Air Cargo Oracle’ designed to turn fragmented inputs into clear, actionable outputs (like a Bloomberg Terminal but for Air Cargo).

The post Global airfreight rates edge higher as fuel costs surge appeared first on Air Cargo Week.