Africa-focused air freight update as global rates ease

Global air-freight rates dipped slightly last week, though capacity constraints and strong demand continued to support high rates on important trade lanes, according to the weekly update by TAC Index.

The agency’s main benchmark, the Baltic Air Freight Index (BAI00), fell 1.5% in the week to 24 November. Despite the dip, the index stayed marginally above its level a year ago, up around 0.3% year on year.

For Africa and the wider emerging markets, rates on Asia-origin routes remained firm. Even though the overall index eased, forward-looking spot rates from Hong Kong under the new “BAI Spot” indices rose again through the week. The broader index for Hong Kong (BAI30) slipped 1.4% week on week, leaving it slightly below the same period last year.

Shanghai (BAI80) saw a minor weekly drop of 0.2% but remained 6.6% higher year on year. Rates from other Asian hubs including Taiwan, Seoul, Bangkok and India moved up, especially on lanes to the United States and Europe. These flows connect with transhipment gateways that African markets frequently depend on, and the upward trend signals steady long-haul demand.

In Europe, some outbound lanes saw mixed movement. The index from Frankfurt (BAI20) fell 3.3% for the week but was only slightly lower year on year. London Heathrow (BAI40) dipped 1.3% week on week but stayed 7.9% above last year’s level. These are important links for African importers and exporters who rely on European hubs for consolidation and distribution.

Outbound rates from the US showed a mixed pattern. The index from Chicago (BAI50) dropped 6.1% week on week and stayed 13.8% below its level a year ago. Some lanes, such as Mexico to Europe, recorded gains and remained well above last year.

TAC Index also added new global routes this week. For Africa, this includes Europe to Africa corridors listed under the new Europe-outbound additions, alongside wider global links such as Europe to Australia, Brazil, India, Mexico and the UAE. Other new lanes include Bangkok to the US, India to Germany, Taiwan to Europe and the US, the US to Brazil, Germany, Seoul and the UK, and a Latin America lane from Mexico to Europe. These additions broaden visibility for African forwarders who rely on multi-leg routes.

This modest correction in global average rates comes as the first phase of the usual peak-season build-up ahead of Thanksgiving in the US slows down. Capacity pressures remain after the grounding of the MD-11 fleet following a recent fatal crash in the US. This continues to affect freighter availability and keeps rates firm on major long-haul lanes that connect with Africa’s key suppliers and customers.