Air cargo faces tariff woes

Global airfreight rates fell last week according to the latest data from TAC Index, the market leading price reporting agency. The global Baltic Air Freight Index (BAI00) calculated by TAC was lower by some -4.1% in the week to 24 February – though despite ongoing fears about the impact of new tariffs and potential trade wars it is still well ahead by some +14.8% from one year ago. This leaves air freight rates still looking comparatively much healthier than container shipping rates, which have seen some big recent falls.

Rates out of China were down during the week both to Europe and to the US. Sources said spot rates were continuing to trend lower but the index of outbound routes from Hong Kong (BAI30) was lower by only -1.4% WoW, and still ahead by a healthy +19.5% YoY. Outbound Shanghai  (BAI80) was also lower by -3.7% WoW, but also still well ahead by exactly the same +19.5% YoY. Elsewhere from Asia, rates were out of India were lower both to Europe and to the US. Out Vietnam rates to the US were also lower, but higher again to Europe.

Out of Europe, overall rates were rising both to China and to the US, though a little lower to Japan. The index of outbound routes from Frankfurt (BAI20) dropped a chunky -15.0% after some big recent gains, though still ahead by +9.2% YoY. Meanwhile, outbound London Heathrow (BAI40) gained +5.2%WoW, leaving it at a similar gain of +8.2% YoY.

From the Americas, the index of outbound routes from Chicago (BAI50) was lower by  -4.6% …