BAI: air freight volatility remains rife
There are few signs of abating pressure on global air freight rates. The overall Baltic Exchange Air Freight Index (BAI) rose to 3,155 this week. The last few weeks recorded the highest absolute readings since the air freight capacity trough in Q2/2020, even as the traditional peak season subsides.
On the demand front, restocking activity has been a major driver of global freight recovery across all modes, including air. Inventory to sales metrics remain near record lows in international consumer markets, particularly in the retail economy. And the capacity situation in ocean freight has not been helping.
Bruce Chan, VP – global logistics, Stifel: "The bottom line: rates are likely to remain elevated and volatile for some time, and those looking for reprieve in 2021 may have to be patient." (ah)