Global air freight rates fell again last week, according to the latest data from TAC Index, with the decline recorded on all the outbound indices for major airports around the world.

The global Baltic Air Freight Index (BAI00) calculated by TAC fell by some 4.5% in the week to May 5.

"Rates had been holding up quite well so far in 2025 compared to a strong and rising market in 2024 – with shippers racing to transport goods ahead of higher tariffs into the US – but have now fallen into negative territory year-on-year by -5.7%," the global air freight rate data said.

TAC Index noted that overall rates out of China have not yet fallen as much as some feared, with rates to Europe slightly up again over the latest week – though down on lanes to the US.

The index of outbound routes from Hong Kong (BAI30) dropped another 3.3% (week-on-week) WoW, leaving it at 7.4% year-on-year (YoY) – though sources report that spot rates have fallen further in recent days, particularly on lanes to the US.

Meanwhile, outbound Shanghai (BAI80) fell 2.4% WoW, taking its decline to 8.6% YoY.

Rates out of India were also falling to the US, while rates out of Vietnam and Bangkok dropped on lanes to Europe.

TAC noted that from Europe, with the EU now threatening tariffs in retaliation for the US, overall rates were declining both on Transatlantic routes as well as to China, though unchanged on lanes to Japan.

The index of outbound routes from Frankfurt (BAI20) fell 5.0% WoW, with falls on all major lanes, though remains slightly up by 1.6% YoY

Despite gains on lanes to the Middle East, outbound London Heathrow (BAI40) fell even more steeply by 10.1% WoW – dragged down by sharp falls on lanes to South East Asia – leaving it languishing at 26.8% YoY.
 
The analysis said from the US, rates were falling both to Europe and to South America, though slightly up on lanes to China.

The index of outbound routes from Chicago (BAI50) fell back after some big recent gains, dropping 10.1% WoW, though remains well ahead by 30.2% YoY.