Air freight rates show slight overall rise, but Middle East conflict and fuel costs cause significant fluctuations across trade lanes.
Global air freight rates showed only a slight overall rise last week, but sharp variations across trade lanes reflected the impact of the Middle East conflict and rising fuel costs, reports London's Air Cargo News.
The Baltic Air Freight Index, calculated by TAC, edged up 0.2 percent in the week to March 9, leaving it 1 percent lower year on year. The headline figure masked steep increases on some Asia-Europe routes and declines elsewhere.
Rates out of Hong Kong rose 8.7 percent week on week, with gains to both Europe and the US. Shanghai saw higher rates to Europe but steep falls on transpacific lanes. Double-digit increases were reported from Vietnam, Bangkok, Taiwan, and India to Europe, with gains also to the US.
Outbound Europe showed mixed patterns. Transatlantic lanes to North America fell modestly, while rates to China, Japan, Mexico, and Brazil also dropped. Frankfurt suffered a 13.4 percent weekly decline, down 18.8 percent year on year, while London Heathrow added gains led by higher rates to the US.
North America lanes were volatile, with transatlantic rates falling but gains to China, South Korea, and South America. Chicago rebounded strongly, up 19.9 percent week on week, cutting its annual decline to 10.8 percent.
TAC Index noted that January had already seen a 19.3 percent fall in rates over four weeks, down 6.1 percent year on year, as the industry entered a quieter period before the current surge in volatility.
