Global Air Freight Index slips despite Middle East disruptions: TAC

The overall decline occurred despite flight disruptions and cancellations across the Middle East due to the Israel-Iran conflict, alongside rising spot rates on key export lanes from China and an increase in jet fuel prices, according to the latest data from TAC Index.

Overall rates out of China slipped slightly to both the US and Europe. However, Hong Kong’s outbound index (BAI30) rose by 0.4 per cent week-on-week (WoW), although it remains 9.8 per cent lower year-on-year. The new BAI Spot indices from Hong Kong also recorded gains ahead of their transition to public trials starting July 1.

In contrast, Shanghai’s outbound index (BAI80) dropped by 2.7 per cent WoW, standing 8.5 per cent lower YoY. Meanwhile, freight rates from India declined again on major lanes to Europe and the US. Vietnam saw rates soften to the US but improve towards Europe, reflecting a regionally diverse pricing landscape.

Air freight rates from Europe firmed overall, particularly on Transatlantic routes to the US as well as lanes to China and Japan. Frankfurt’s outbound index (BAI20) rose 5.7 per cent WoW and stood 2.7 per cent higher year-on-year. London Heathrow (BAI40), after a strong surge the previous week, dipped 5.2 per cent WoW but remained significantly up by 20.8 per cent YoY.

Out of North America, freight rates increased on key routes to Europe and China. Although rates to South America declined slightly WoW, they stayed well above year-ago levels. The Chicago outbound index (BAI50) rose 2.1 per cent WoW but was still 4.6 per cent lower compared to the same period last year, indicating mixed momentum across outbound North American lanes.

ALCHEMPro News Desk (SG)