air-cargo

Air Cargo Rates Decline as Jet Fuel Costs Fall

Global airfreight rates retreated this week as jet fuel prices dropped approximately 10% in early May. This provided relief after months of sustained increases tied to Middle East tensions. The Baltic Air Freight Index declined 4.9% for the week ending May 18, though rates remain 30% above year-ago levels. Jet fuel prices, despite the pullback, are still up roughly 80% year over year. Major Asian hubs showed rate decreases, with Hong Kong and Shanghai indices both down week on week. China-to-US routes eased lower, while Southeast Asian lanes from Vietnam and Bangkok strengthened. European outbound rates fell on transatlantic and Asia routes following significant gains since the Iran conflict pressured capacity. Frankfurt and London Heathrow indices retreated, with Chicago spot rates plummeting 24%. Rates from India and Mexico remained substantially elevated compared with the prior year.