Global air freight rates edged lower last week according to the latest TAC Index data. The Baltic Air Freight Index declined around 0.6% in the week ending June 9, marking a 4.8% drop compared with the same period last year. Despite lingering tensions in the Middle East that have disrupted regional capacity, overall global air cargo pricing holds steady, displaying resilience amid trade uncertainty.
The decline was most notable on key Asian export routes. Rates from major Chinese hubs, including Hong Kong and Shanghai, fell slightly week-over-week, although Hong Kong maintained a modest weekly gain of 0.8% . European lanes also saw mixed performance: Frankfurt’s outbound index softened, while London Heathrow remained relatively stable despite downward pressure.
Regionally, Middle East capacity has plunged—especially in Iran, Syria, and Iraq—as carriers suspend services due to the Israel–Iran conflict, contributing to a global capacity retraction. Yet, these disruptions haven’t triggered sharp increases in rate spikes; instead, they’ve added volatility in intra-month pricing patterns.
Industry experts attribute the market’s relative stability to lingering tariff and trade policy uncertainties, which continue to restrain shippers from committing to rate hikes. The result is a cautious pricing environment, with small weekly moves underscored by longer-term pressure on demand.
In summary, global air freight rates are easing modestly but remaining resilient amidst regional disruptions and global trade pressures. While capacity constraints in the Middle East are being watched closely, overall market conditions suggest a tempered outlook shaped by ongoing volatility rather than sharp rate shifts.
