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Airfreight rates on key trade lanes out of Hong Kong were flat in March but remain ahead of the year-ago level.
The latest figures from the Baltic Exchange Airfreight Index, based on TAC data, show that average rates, based on both spot and contract, from Hong Kong to North America declined by 1.5% compared with a month earlier to $5.29 per kg. Compared with last year, rates on the trade are up 8.4%.
Meanwhile, from Hong Kong to Europe rates in March were up 0.5% to $4.39 per kg, while they are up 12% on last year’s levels.
March tends to see rates start to flatten off after the Christmas and Lunar New Year swings that affect the market in December, January and February.
TAC pointed out that the year-on-year rate performance in March was "impressively strong” given that last year prices were already strong due to the Red Sea crisis and surging e-commerce volumes.
"Over the last year to 28 March, jet fuel prices also fell an average of 7.8%, according to data from Platts," TAC added. "Higher rates combined with lower fuel costs should thus be boosting margins for carriers."
"Sources largely agreed about the main reason rates were rising overall, particularly in the last two or three weeks of the month – the primary driver being impending tariffs that will be imposed in the US after 2 April."
Looking ahead, the market outlook is uncertain, according to TAC, given the "erratic pattern of on-again, off-again announcements about tariffs coming out of the White House".
"All of this has also made it more difficult for market participants – including airlines, forwarders, and shippers – to plan ahead with confidence," TAC editor Neil Wilson said.
"That is also before taking into account the potential responses of other trading partners – and all the uncertainties about that."
