August sees rate declines in most lanes

The Baltic Air Freight Index for August fell 1.52% month on month, showing that prices continued to ease on most lanes, albeit not to the same extent as in July. For example, the Hong Kong Outbound Index (BAI30) dipped by 1.15% MoM and the Shanghai Pudong Outbound Index (BAI80) fell by 3.54%. While the London Heathrow Outbound Index (BAI40) dropped 5.82%, the Singapore Outbound Index (BAI60) registered a double-digit decrease of 16.28%. Chicago O’Hare Outbound (BAI50) was the only one of the main outbound indices to see a MoM increase at 10.17%. Asia-Europe adjusts to EU de minimis change Since the European Union’s new temporary €3 fee for all low-value parcel imports worth less than €150 came into force July 1, the flow of small packages into the EU has fallen by 30-50%, France’s Economy Minister Roland Lescure said at an event in Paris at the end of August. The market may still be feeling the effects of this structural change as it settles to another new normal, with the Hong Kong to Europe Index (BAI31) dropping 12.75% MoM in August and Shanghai Pudong to Europe (BAI81) declining 7.76%. AI hardware continues to support trans-Pac Trans-Pacific rates appeared to stabilize in August after MoM decreases in July. Hong Kong to North America (BAI32) was up 0.31% and Hong Kong to USA (BAI34) grew by 1.17%, while Shanghai Pudong to North America (BAI82) increased by 0.33%. Shanghai Pudong to USA (BAI84) was almost flat, with a dip of 0.01%. The Asia-North America lane continues to be supported by the booming AI industry and its demand for semiconductors, server racks, data center infrastructure and other related hardware. Other lanes The only other corridors where rates increased in August compared to July were London Heathrow to South East Asia (BAI43) at 0.16% and Chicago O’Hare to South East Asia (BAI53), which shot up 15.54%. On the other hand, Singapore to South East Asia (BAI63) dropped by 15.44%, reflecting possible overcapacity. Freighter supply With more MD-11Fs gradually coming back online with both FedEx and Western Global Airlines, the large-widebody segment is seeing some relief to the tightness in capacity, according to Cargo Facts Consulting analysis. At the same time, the first Mammoth Freighters 777-200LRMF is being prepared for entry into service with DHL, while 777 conversions generally will continue to ramp up in the months ahead. Short-term outlook: Another tariff on China? As Chinese President Xi Jinping travels to India ahead of an official visit to meet U.S. President Donald Trump in Washington later in September, the U.S. is reportedly looking to impose an additional 7.5% tariff on Chinese goods after an investigation into alleged structural excess capacity and production in manufacturing. Should this new tariff be implemented, it is likely to result in more frontloading similar to what happened in 2024, which could strain the already tight Asia-North America corridor and push rates up further. [This analysis was first published in the Sept. 4 edition of The Baltic Exchange Airfreight Index (BAI) Newsletter.] Cargo Facts Symposium 2026, the premier event for the freighter aircraft and air cargo industries, will take place in Nashville, Tenn., on Oct. 21-23. Find out more and register today .

August sees rate declines in most lanes

Ethiopian Airlines nears deal with Boeing for ten 777 freighters

IAI A330-300BDSF makes 1st post-conversion flight ahead of certification

Related Posts

July reset: lower rates, uneven market

Routes, risk and resilience: The transformation of global freight

June brings stability, not relief

IAI A330-300BDSF makes 1st post-conversion flight ahead of certification

Cargo Facts Free Newsletters

Cargo Facts Connect Podcast

Follow Us

Welcome Back!

Retrieve your password