Airfreight prices fall moderately

Airfreight prices slid last week, with the Baltic Air Freight Index falling 0.9% week over week for the week ending Aug. 21, leaving it down 45.5% year over year. This slight setback comes after the index edged up 1.2% WoW the prior week, according to TAC Index , which published the index data. “Market sources remain divided between those who now foresee some sort of upturn and peak season ahead, and those who remain nervous about weak demand and ongoing over-capacity despite recent cutbacks by carriers,” the TAC Index report stated. [caption id="attachment_57137815" align="alignnone" width="1024"] (Photo/TAC Index)[/caption] Rates were slightly lower last week for most major outbound destinations, with Hong Kong International Airport (HKG) routes down by 1.6% WoW, leaving the YoY decline at 42.4%. Nevertheless, Shanghai Pudong International Airport (PVG) saw a gain of 0.1% WoW, though its YoY decline is 48.4%. The weekly PVG rates were “helped by prices to the U.S. edging up,” according to TAC Index. The Frankfurt Airport (FRA) index fell 0.5% WoW, an improvement from the prior week, when rates fell 2.1% WoW. TAC Index said FRA’s rates were boosted by a bounce on rates to North America despite falls on routes to Asia. FRA’s YoY decline is 43.9%. However, London Heathrow Airport (LHR) “saw no such bounce on U.S. routes” and dropped another 3.8% WoW, leaving that index lower by 51.4% YoY. Rates from Chicago O’Hare International Airport (ORD) firmed up 0.8% WoW, driven by gains on routes to Southeast Asia, leaving the YoY decline at 44.6%, according to TAC Index. Overall, rates on U.S. routes were higher to China, but lower to Europe and to South America. WorldACD reports falling tonnages Average global air cargo rates have stabilized in the last five weeks, down 37% YoY, but still more than 30% above pre-pandemic levels, WorldACD reported recently, based on its most recent market data. Nevertheless, the decreasing trend in global tonnages continued into the first full week of August, with volumes 4% lower YoY. Figures from Aug. 7-13 show a 2% WoW drop in tonnages, while average worldwide air cargo prices remained flat, based on the more than 400,000 weekly transactions covered by WorldACD’s data. Comparing the two weeks from July 31 to Aug. 13 with the preceding two weeks, overall tonnages dropped 2%, while worldwide rates were stable and capacity was down 1%. Regional volume decreases At a regional level, significant decreases in tonnages were recorded on flows from North America to all main regions, notably by 9% 2Wo2W to Asia Pacific, 6% 2Wo2W to Central and South America, and 4% 2Wo2W to Europe. Volumes dropped in both directions between Europe and Central and South America, by 9% 2Wo2W northbound and 5% 2Wo2W southbound; and between Europe and Africa, by 4% 2Wo2W northbound and 8% 2Wo2W southbound; and tonnages from Asia Pacific to Europe fell 5% 2Wo2W. The only notable increase was for flows from the Middle East and South Asia to Asia Pacific, which rose 5% 2Wo2W. [caption id="attachment_57137817" align="alignnone" width="1024"] (Photo/WorldACD)[/caption] 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 .

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