• Global airfreight rates were broadly stable last week, with the Baltic Air Freight Index (BAI00) declining 0.6% week-on-week but remaining 16.8% higher year-on-year. Softer pricing was attributed to increased passenger bellyhold capacity during the summer period and improved carrier preparedness following earlier market disruptions.
• Rates from Asia showed mixed trends, with China-Europe lanes continuing to weaken while some transpacific routes strengthened. Hong Kong and Shanghai outbound rates remained above year-ago levels, supported by continued demand linked to technology and semiconductor shipments, although North Asian markets saw some recent declines.
• European and US markets also recorded uneven performance, with most European outbound rates falling except for Europe-UAE routes, which surged due to Middle East disruption. US outbound rates strengthened on selected lanes, including China, Germany and Brazil, while overall global air cargo pricing remained resilient despite ongoing geopolitical uncertainty.

Global airfreight rates were little changed overall last week, according to the latest data from TAC Index, the leading price reporting agency in air freight markets and calculating agent for the Baltic Air Freight indices. The global Baltic Air Freight Index (BAI00), calculated by TAC, edged lower by -0.6 percent over the seven days to July 27, a fifth consecutive weekly fall leaving it still up but now by only +16.8 percent year-on-year – despite volatile conditions in global energy and jet fuel markets following renewed exchanges of fire across the Middle East. Sources suggested various factors keeping rates subdued – from extra passenger bellyhold capacity coming on stream during the summer holidays to the fact that carriers were more prepared for market shocks after being taken by surprise in March.

Rates on the busiest lanes out of China kept falling WoW to Europe, though little changed to the US. BAI spot rates out of Hong Kong, Shanghai and India were also firming up on transpacific lanes while falling to Europe – though weaker both ways from Korea. The index of outbound routes from Hong Kong (BAI30) – reflecting the full spectrum of spot and contract rates across multiple lanes from the world’s busiest cargo airport – edged higher by +0.2 percent WoW to leave it at +16.5 percent YoY. Outbound Shanghai (BAI80) was narrowly lower by -0.2 percent WoW to leave it at +23.3 percent YoY. From South and South East Asia, rate patterns were similar, with rates to Europe mostly falling except for a spike on lanes from Bangkok – but with gains on rates to the US from Hanoi and Malaysia as well as from India. From North Asia, after big gains this year driven by the booming AI/semiconductor sector, rates were mainly lower both to the US and to Europe from Seoul and from Taiwan. But there was a rise in rates from Japan to Europe, another important lane newly added to the data.

From Europe, rates were mostly lower WoW across the board, including on the busiest transatlantic lanes to the US as well as to China, Japan, India, Mexico, Brazil, Australia and South Africa. The one big exception was in rates from Europe to the UAE, which spiked yet again WoW after further disruption to traffic caused by renewed conflict in the Middle East – and remain more than double where they were a year ago. The index of outbound routes from Frankfurt (BAI20) shed around -7.6 percent WoW to leave it in negative territory at -2.5 percent YoY. Outbound London Heathrow (BAI40) by contrast gained +7.4 percent WoW, boosted by gains on rates to the Middle East as well as to South East Asia and the US – leaving it up at +20.1 percent YoY.

Out of the US, rates were firmer on a number of lanes including to China and to Germany as well as the UK, though not overall to Europe – and likewise higher to Brazil, but not overall to South America. The index of outbound routes from Chicago (BAI50) shed -4.2 percent WoW to leave it at +16.4 percent YoY. Rates from Mexico to Europe edged a little higher again WoW and also remain well up YoY.

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