Air Freight Rates Continue Rising, But Growth Momentum Slows
1. Freight Rate Developments
- Global average air freight rates:
- Increased by approximately +4.1% week-over-week (WoW)
- Surged +32.7% year-over-year (YoY)
This indicates that freight rates remain at very high levels, although the market is no longer experiencing the same “rapid surge” seen previously.
2. Key Drivers Behind the Increase
Jet fuel prices remain the largest factor driving airline operating costs upward, especially amid ongoing geopolitical instability.
2. Airspace Disruptions & Flight Diversions
- Aircraft are required to reroute flights
- Longer flight times increase operating costs
- Fleet utilization efficiency declines
→ Resulting in reduced effective market capacity.
3. Continued Strong Supply Chain Demand
- Many businesses are shifting shipments from ocean freight to air freight to avoid delays
- High-value industries such as electronics and pharmaceuticals continue to maintain stable demand
3. Regional Market Trends
- US – Europe routes: Freight rates continue rising due to stable demand and limited capacity
- Asian markets: Showing mixed performance:
- Some trade lanes recorded slight declines
- Others continued increasing due to export demand recovery
4. Current Market Conditions
- Rates: Still high but no longer rising aggressively
- Capacity: Remains tight and has not fully recovered
- Demand: Continues to stay stable
The market is gradually transitioning from a “price shock” phase to a “high-price stability” phase.
Insight: Air freight is entering a “new normal” characterized by consistently high pricing levels, where businesses are now required to:
- Recalculate their logistics cost structures
- Use air cargo mainly for urgent or high-value shipments
5. International Market Data Update
According to TAC Index data (April 28, 2026), the Baltic Air Freight Index (BAI00) increased another +4.1% week-over-week and +32.7% year-over-year, maintaining levels higher than previous peak seasons.
- Asia: China and Hong Kong continued rising, while Southeast Asia showed mixed trends
- Europe: Strong growth on US-bound routes, with softer demand on some Asia lanes
- United States: Sharp pricing increases, particularly from Chicago (+27.4% WoW)
Although the pace of increase has slowed, freight rates remain elevated due to unresolved fuel cost pressures and persistent capacity constraints.
The air freight market is gradually stabilizing, but at a significantly higher pricing level. Businesses should adjust their logistics strategies, optimize transportation costs, and select suitable shipping methods to maintain operational efficiency in this evolving market environment.
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