Airfreight rates see slight upturn

Global airfreight rates firmed up slightly last week, with the Baltic Air Freight Index edging up 1.2% in the week ending Aug. 14, leaving the index’s 12-month decline at 45.1%. Market sources from TAC Index expect this upward trend to continue into September. [caption id="attachment_57137734" align="alignnone" width="1024"] (Photo/TAC Index)[/caption] Last week’s rise in rates was seen nearly across the board, according to the latest data from TAC Index. Outbound rates from Hong Kong International Airport (HKG) — the world’s largest cargo airport by volume — rose 1.7% week over week, leaving its year-over-year fall to 40.9%. “Sources cited strong demand on TransPacific routes, which often lead the market trend ahead of Thanksgiving, though rates from Hong Kong were also higher to Europe as well as to North America,” the TAC Index report said. Rates out of Shanghai Pudong International Airport (PVG) were stronger to the United States and lower to Europe, rising overall 2.2% WoW to leave the YoY decline at 47.3%. PVG is the world’s third largest cargo airport by volume. The only major outbound location to show a decline was Frankfurt Airport (FRA), which saw rates fall 2.1% WoW to leave its YoY drop at 45.5%, dragged down by lower rates to North America. London Heathrow Airport (LHR) edged up slightly at 0.5% WoW, mainly due to higher rates to Southeast Asia, though rates to the United States dropped. There was also a firmer tone from Chicago O’Hare International Airport (ORD), with rates up 1.5% WoW leaving its YoY decline at 45.4%, led by higher rates to Europe. “Elsewhere out of the U.S., rates were generally a little lower, both to China and to South America,” the TAC Index report said. “Among other locations, rates were fairly flat from Vietnam, but rising sharply out of India, both to Europe and to North America.” Tonnage continues to fall The beginning of August continued to see decreasing tonnages — a trend seen in the past several months — while global airfreight rates appeared to stabilize during the past four weeks, according to the latest figures from WorldACD Market Data . WorldACD figures from July 31 to Aug. 6, the most recent data available, showed a 3% WoW drop in tonnage and a 1% WoW increase in global air cargo prices. Comparing the two weeks from July 24 to Aug. 6 to the prior two weeks, tonnage dropped 2% 2Wo2W, while capacity and rates remained flat. Tonnages decreased significantly in several regions. Tonnages from North America to Asia Pacific fell 12% 2Wo2W and from Asia Pacific to Europe fell 6% 2Wo2W. Volumes into Europe from Central and South America and from Africa both fell 4% 2Wo2W, as did volumes into Central and South America from North America and from Europe. Flow from the Middle East and South Asia into Europe recorded the only notable increase: 5% 2Wo2W. YoY perspective Chargeable weight from July 24 to Aug. 6 was down 6% YoY, with strong decreases in tonnages out of North America (19%) and Europe (8%), according to WorldACD. The only increase came out of the Middle East and South Asia (3%). Overall capacity increased 9% YoY, with capacity out of Asia Pacific up by 31% YoY. Other double-digit percentage YoY capacity increases were seen out of the Middle East and South Asia (11%) and Africa (10%), while capacity from Central and South America fell 5% YoY. Worldwide average rates are 37% below their levels this time last year, although they remain 33% above pre-pandemic levels in 2019. Join Air Cargo Next for its second annual Air Cargo Tech Summit on Sept. 18-19 in Brussels, sponsored by Unisys and Brussels Airport and featuring a fireside chat with Brian Hodges, managing director, American Airlines Cargo. For more details and to register, click here .

Airfreight rates see slight upturn

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