Air Freight Drops 2.1% After 'Golden Week' and Remains 24.3% Higher Year-on-Year
The Baltic Air Freight Index dropped 2.1% weekly following factory closures in China during 'Golden Week', but rates remain 24.3% higher than a year ago.
The Baltic Air Freight Index fell 2.1% on a weekly basis, attributed to factory closures in China during the 'Golden Week' holiday, according to Air Cargo News citing the TAC Index.
Despite this decline, rates remain 24.3% higher than their level a year ago, with the Shanghai outbound freight index recording a similar drop of 2.1%.
In the same context, the IATA Jet Fuel Price Monitor showed an increase of 3.1% for the week ending October 9, and a 112% year-on-year increase linked to the conflict in the Middle East.
Rising fuel prices add to the operating costs of air cargo carriers, which may limit the decline in freight rates in the coming weeks even as Chinese factories resume work.
What do these terms mean?
'Golden Week': A week-long national holiday in China during which factories close, temporarily slowing freight movement.
TAC Index: An index measuring air freight rates on major global routes, published by TAC Index.
Air Freight: The transportation of goods by aircraft, used for high-value or urgent cargo such as electronics and pharmaceuticals.
Jet Fuel: A type of fuel designed for aircraft, representing one of the largest cost items for airlines and air freight companies.
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