• Global air freight rates increased slightly last week according to the latest data from TAC Index, calculating agent for the Baltic Air Freight indices.
• The global Baltic Air Freight Index (BAI00) gained +0.9 percent over seven days to September 21 – leaving the index now at +20.9 percent versus where it was a year ago, with rates remaining strong in the run up to the traditional peak season.
• With jet fuel rates now up more than double at +116.5 percent year-on-year to September 18, according to the IATA Jet Fuel Price Monitor, pressure for rates to rise further would seem to be increasing.

The latest TAC Index report, has indicated a slight increase in global air freight rates week-on-week (WoW) with jet fuel rates now up more than double year-on-year, at +116.5 percent. Rates on the busiest lanes out of China were firming up again week-on-week (WoW) to Europe but a little lower to the US – though still up much more YoY on Transpacific lanes since volumes of small parcels to Europe fell following the end to the EU de minimis regime in July.

BAI Spot rates out of Hong Kong were little changed WoW, but the full index of outbound routes from Hong Kong (BAI30), reflecting the whole spectrum of spot and forward contract volumes, gained +0.3 percent WoW to leave it at +19.6 percent YoY. Outbound Shanghai (BAI80) was similar, gaining +0.6 percent WoW to leave it at +19.7 percent YoY. From Southeast Asia, rates were also mainly rising WoW on lanes from Bangkok, Hanoi and Malaysia, though falling a little from Vietnam to Europe. From East Asia, rates were rising WoW to Europe from Japan and Taiwan, but also a little lower from Seoul – as well as a little down from both Seoul and Taiwan on lanes to the US. Rates from India were up WoW to the US but unchanged to Europe.

From Europe, rates on Transatlantic routes to the US fell back overall after recent gains – though not on lanes from Amsterdam, Frankfurt or London. There were also falls in rates WoW to India, Japan, Mexico, Brazil, South Africa and the UAE, but also further gains on lanes to China and Australia. The index of outbound routes from Frankfurt (BAI20) bucked the rising global trend, dropping by -3.4 percent WoW, though still remained well up at +21.1 percent YoY. By contrast, outbound London Heathrow (BAI40) rebounded from some recent falls, jumping exactly +10.0% WoW to leave it at +11.4 percent YoY.

Out of the US rates were mostly firmer again WoW, including on lanes to Europe and to China – though lower to South America and certain other lanes such as to the UK and Korea. The index of outbound routes from Chicago (BAI50) edged up a further +1.0 percent WoW to leave it up some +45.7 percent YoY compared with low levels last year when standoffs over US tariffs and trade terms were in full swing. Rates from Mexico to Europe fell sharply WoW but remain in positive territory YoY.

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