Airfreight rates continued their upward trend last week as businesses sought to transport goods ahead of the anticipated announcement of sweeping new U.S. tariffs.
According to data from TAC, compiled for the Baltic Air Freight Index, overall air cargo rates increased by 2.4% in the week ending March 31, reflecting a 5.1% rise compared to the same period last year. This marks the third consecutive week of rate increases, following a steady climb since early March.
Rates from key Asian hubs saw varying degrees of growth. Airfreight prices from Hong Kong rose 2.6% week-on-week and 1.4% year-on-year, while shipments from Shanghai experienced a modest 0.6% weekly increase and a 3.9% annual rise.
In Europe, rates surged significantly. Airfreight prices out of Frankfurt jumped 8.3% week-on-week, marking a substantial 28.2% increase from the previous year. London also saw a sharp rise, with rates climbing 15.5% from a week earlier and registering a 2.6% annual increase.
Conversely, U.S. rates experienced downward pressure, with prices from Chicago dropping 12.5% compared to the previous week.
TAC attributed the recent price hikes to shippers rushing to move goods before the expected enforcement of new and stricter tariffs on April 2.
President Donald Trump is set to announce a new set of tariffs, possibly as early as April 1 or April 3, branding the occasion “Liberation Day.” He has repeatedly argued that the U.S. has been unfairly exploited in global trade and is looking to implement tariffs that may target entire nations or specific industries.
Last week, the U.S. imposed a 25% tariff on all imported automobiles and auto parts, a move industry analysts see as a significant shift in trade policy with wide-ranging effects.
Chris Clowes of consultancy firm Scala described the automotive tariffs as a dramatic escalation, warning of consequences that extend beyond the U.S.
“While the goal may be to bolster domestic manufacturing, modern automotive supply chains are highly intricate and global in nature,” Clowes explained. “Many components cross multiple borders before final assembly, meaning these tariffs could drive up costs not just for manufacturers and suppliers, but ultimately for consumers as well.”
Clowes also noted that such trade disruptions force companies to quickly reassess sourcing strategies, reroute shipments, and renegotiate contracts, all under significant time constraints.
Source: aircargonews.com