Airfreight rates have risen again as jet fuel remains elevated and TAC Index reports a return to normal is not expected anytime soon.
The global Baltic Air Freight Index (BAI00), calculated by TAC, increased 5.1% over the week to 6 April, leaving it up 15.8% year on year.
“With the price of jet fuel remaining elevated, and supply now scarce in some locations, sources do not anticipate a return to normal conditions any time soon – even if there is a swift resolution to the conflict in the Gulf,” said TAC Index.
Rates on the busiest lanes out of China, to Europe and the US, were up almost 30% year on year in both directions.
The index of outbound routes from Hong Kong (BAI30) was up 8.6% week on week and 13.4% year on year.
Outbound Shanghai (BAI80) gained 6.4% week on week and 21.3% year on year.
There were also significant week-on-week gains on lanes out of Southeast Asia from Bangkok as well as from Vietnam, noted TAC Index.
Rates from North Asia were more flat or lower week on week on lanes from Seoul and from Taiwan, though still up year on year, particularly on lanes to Europe.
Meanwhile, BAI Spot rates have surged, particularly on lanes out of India, since the Middle East conflict began.
Therefore, there was no surprise the indices of overall rates from India also continued to rise week on week both to Europe and the US, remarked TAC Index.
After recent gains, rates from Europe were more mixed last week – with further gains on Transatlantic lanes to the US as well as to Japan, Brazil, South Africa and the UAE (though based on much lower than usual volumes) offset by declines to China, India, Mexico and Australia.
The index of outbound routes from Frankfurt (BAI20) dipped 2.1% week on week, though it is ahead 6.1% year on year.
Outbound London Heathrow (BAI40) also dipped slightly by 0.3% week on week, though after strong gains in recent months remains up by around 48.8% year on year.
From the US, rate patterns were also mixed – with modest falls on lanes to Europe and to China, but gains to South America as well as to the UK and South Korea.
The often volatile index of outbound routes from Chicago (BAI50) had a quieter week, gaining 1.9% to leave it narrowly down 0.4% year on year.
Rates from Mexico to Europe jumped again week on week to leave them well up year on year.
