Global air freight rates edge up 0.9% week-on-week as jet fuel costs surge 116.5% year-on-year
Why It MattersFirming global air freight rates ahead of peak season, alongside sharply higher jet fuel costs, point to tightening capacity and rising cost pressure across cargo lanes worldwide.
The global Baltic Air Freight Index (BAI00) rose 0.9 percent in the seven days to September 21, leaving it 20.9 percent higher year-on-year, with rates remaining firm ahead of the traditional peak season. Jet fuel costs are adding further upward pressure: according to the IATA Jet Fuel Price Monitor, jet fuel prices were up 116.5 percent year-on-year to September 18, more than double the level of a year earlier. The TAC Index report confirmed a slight week-on-week increase in global air freight rates.
Rates on the busiest lanes out of China firmed week-on-week to Europe but eased slightly to the US, though transpacific rates stayed well above year-ago levels. Volumes of small parcels to Europe have fallen since the EU de minimis regime ended in July, weighing on some China-Europe flows. BAI spot rates out of Hong Kong were little changed week-on-week, while the full outbound Hong Kong index (BAI30) gained 0.3 percent to stand 19.6 percent above year-ago levels. Outbound Shanghai (BAI80) rose 0.6 percent week-on-week, up 19.7 percent year-on-year.
From Southeast Asia, rates mostly rose week-on-week from Bangkok, Hanoi and Malaysia, though rates from Vietnam to Europe edged lower. From East Asia, rates to Europe increased from Japan and Taiwan but slipped from Seoul; lanes from Seoul and Taiwan to the US also fell slightly, while rates from India rose to the US and were unchanged to Europe.
In Europe, the Frankfurt outbound index (BAI20) dropped 3.4 percent week-on-week despite remaining 21.1 percent above year-ago levels, while London Heathrow outbound (BAI40) jumped 10.0 percent week-on-week to sit 11.4 percent higher year-on-year. Transatlantic rates from Europe to the US fell overall except from Amsterdam, Frankfurt and London, and European rates also declined to India, Japan, Mexico, Brazil, South Africa and the UAE while rising to China and Australia. Out of the US, rates were mostly firmer week-on-week, including to Europe and China, though they fell to South America, the UK and Korea. The Chicago outbound index (BAI50) edged up 1.0 percent week-on-week, leaving it 45.7 percent above year-ago levels, a comparison distorted by depressed rates last year during US tariff and trade-term standoffs, while rates from Mexico to Europe fell sharply week-on-week but stayed in positive year-on-year territory.
