Global airfreight rates rose strongly again last week as the market headed into what is traditionally the highest point of peak season according to the latest data from TAC Index, the leading price reporting agency in airfreight markets. The overall Baltic Air Freight Index (BAI00) calculated by TAC was up +4.6% in the week to 2 December, though still slightly below where it was at this point last year – by -1.1% YoY – when there was a particularly big peak season spike. Sources suggested that spot rates were still rising strongly over the last week, but the index averages were not going up so much due to the large amount of ‘controlled capacity’ booked in advance by freight forwarders.

Rates out of China were up again both to Europe and to North America. The index of outbound routes from Hong Kong (BAI30) was up another +2.8% WoW, with gains on most major lanes – though still a little below last year’s level at -1.4% YoY. Outbound Shanghai (BAI80) surged +6.9% WoW, driven by big gains to North America, though also still a tad lower YoY – by -0.7%. Rates were also up again WoW out of Vietnam both to Europe and to the US, and there were significant spikes too on lanes to Europe from other airports in Asia such  as Bangkok and Seoul – though rates from India were slightly lower.

Meanwhile, there was also big surge in rates out of Europe, particularly on Transatlantic lanes to the US – perhaps partly due to some weather disruptions – though less so to China or Japan. The index of outbound routes from Frankfurt (BAI20) jumped +13.8% WoW, finally pushing it back into positive territory at +6.3% YoY. After recent gains, outbound London Heathrow (BAI40) eased lower by -1.0% WoW – but is still ahead by +13.8% YoY.

From the Americas, the index of outbound routes from Chicago (BAI50) also bucked the rising trend, dipping -2.4% WoW despite some big gains on routes to Europe, leaving it lower again by some -18.0% YoY. Overall rates from the US were rising again both to Europe and to South America – particularly from Miami, which does a large proportion of that trade – though not to China.

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