Global air freight rates continued to drift lower last week, according to the latest data from the TAC Index.
The price reporting agency (PRA) for air freight said the overall Baltic Air Freight Index (BAI00) slipped another -1.8% in the week to August 28, taking its fall over 12 months to -45.9%.
"With jet fuel prices rising sharply in the past month, continuing weak cargo rates will be piling further pressure on operators of dedicated freighters — especially those with older, less fuel-efficient planes — in what some see as a 'survival of the fittest' test," TAC Index said.
It added that despite the overall weak tone, strong e-commerce business out of southern China continued to keep rates edging up from that region, with the index for outbound Hong Kong (BAI30) up another +1.7% WoW — with gains on rates both to Europe and North America as well as intra-Asia — clipping its YoY fall to -40.5%.
Rates out of Shanghai (BAI80) also edged up +0.2% WoW — boosted by higher rates to Europe — taking the YoY drop from there to -46.9%.
The TAC Index report revealed that rates from Europe continued to weaken, with outbound Frankfurt (BAI20) falling another -4.0% WoW to take its YoY drop to -44.0% and London (BAI40) off another -5.9% WoW to take the YoY drop from there to a whopping -55.9% – and that was despite higher rates to North America from both locations.
Rates from the US higher in all major markets
Despite a sharp drop from Chicago (BAI50) WoW, rates from the US overall were higher in all major markets, including to South America as well as to Europe and China.
It added that rates were also higher out of Vietnam and from India to Europe, with the firmer tone on intra-Asia e-commerce also showing out of Singapore (BAI60), which gained +6.4% WoW to leave its YoY decline at -48.3%.