• Air cargo rates dropped sharply in the first week of January, following the usual post-holiday dip in volumes, according to TAC Index.
• The global Baltic Air Freight Index (BAI00) fell by 14.1 percent week-on-week, down 11.4 percent year-on-year.
• Outbound Hong Kong rates dropped 12.8 percent week-on-week, while Shanghai rates plunged 19.9 percent. The declines were widespread across Asia, with notable exceptions in Taiwan and Bangkok. European exports saw mixed movements, with Frankfurt down 4.8 percent and Heathrow down 11.2 percent week-on-week. US-origin rates also declined, especially out of Chicago, which saw a 14.3 percent drop week-on-week and a 33.9 percent fall year-on-year.

Airfreight rates fell sharply last week – as they usually do over the New Year period when volumes fall after the end of peak season – according to the latest data from TAC Index, the leading price reporting agency on air freight markets. The global Baltic Air Freight Index (BAI00) calculated by TAC dropped by some 14.1 percent in the week to January 5, leaving it lower by 11.4 percent compared to the same week a year ago.

Rates out of China fell on lanes both to Europe and to the US, with BAI Spot rates from Hong Kong dipping sharply day by day in both directions. The full index of outbound routes from Hong Kong (BAI30) – reflecting the whole spectrum of spot and forward rates being paid – dropped 12.8 percent week-on-week, leaving it lower by 3.9 percent year-on-year.

Outbound Shanghai (BAI80) plummeted 19.9 percent week-on-week to leave it down 6.1 percent year-on-year. Elsewhere in Asia, rates also mostly declined and were lower year-on-year, including from Vietnam, India and Seoul to Europe and the US. Notable exceptions included rates from Bangkok to Europe, which rose week-on-week, and from Taiwan, where rates increased both week-on-week and year-on-year – supported by ongoing strong demand for semiconductor shipments.

Out of Europe, rate trends were mixed. After several weeks of gains, rates finally fell on Transatlantic lanes to the US and were also slightly lower to China and Japan. However, rates increased on lanes to Australia, Brazil, Mexico, India and the UAE. Rates to South Africa fell week-on-week but remained higher year-on-year.

The index of outbound routes from Frankfurt (BAI20) slipped by 4.8 percent week-on-week and is now 25.3 percent lower year-on-year. Outbound London Heathrow (BAI40) dipped by 11.2 percent week-on-week and is down 15.3 percent compared to a year ago.

From the US, most outbound lanes also saw falling rates, including to Europe and South America – though not to China or South Korea. The index of outbound routes from Chicago (BAI50) dropped 14.3 percent week-on-week and now sits 33.9 percent below its level a year earlier. Rates from Mexico to Europe declined slightly week-on-week but remain nearly flat on a year-on-year basis.