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Airfreight rates edge up in September

Airfreight rates edged up in September as the air cargo market headed towards its fourth-quarter peak season. Figures from data provider TAC Index show that rates on two key trade lanes - Hong Kong-North America and Hong Kong-Europe - both increased during the month. Average rates - combined spot and contract prices - paid by forwarders from Hong Kong to North America increased slightly to $7.02 per kg during the month compared with $6.98 per kg in August. From Hong Kong to Europe, there was an increase from $4.58 per kg to $4.80 per kg. The increases reflect the start of a gradual increase in demand at this time of year as companies start to add to their inventories ahead of the fourth-quarter peak season. Compared with last year, rates from Hong Kong to North America were up 31% while from Hong Kong to Europe they were up 8.8%. The higher rates than a year ago reflect higher jet fuel prices as a result of the Middle East conflict. Rates to North America grew ahead of those to Europe as AI-related infrastructure demand has boomed to the US this year. Meanwhile, volumes from Asia to Europe have come under pressure due to the European Union's introduction of a charge of €3 per package for shipments valued at less than €150, targeting e-commerce. Early data for the first few days of October appears to show that the rate increase accelerated as the fourth quarter got underway and ahead of the Golden Week celebration in China that runs from 1 to 7 October. The global Baltic Air Freight Index calculated by TAC jumped by 5% over seven days to October 5, leaving it up 25.5% from 12 months earlier. Rates are higher than a year-ago due to the US-Iran conflict and the impact on jet fuel prices, as well as buoyant demand on certain trade routes fuelled by data centre-related volumes. "That sort of jump was not unexpected after rates had been edging up slightly throughout September, but far from keeping pace yet with surging jet fuel prices," TAC said, pointing out that jet fuel prices are up more than 100% year on year. The index of outbound routes from Hong Kong last week rose 3% week on week to leave it ahead by 22.3% year on year, TAC said in its weekly market update. Outbound Shanghai gained 2.2% week on week to leave it at 18.3% year on year. "Rates elsewhere out of East Asia were more mixed, with gains week on week out of Japan and Seoul - but falls on lanes from Taiwan," TAC said. "Likewise out of Southeast Asia, with gains from Vietnam - though not on lanes from Hanoi to Europe - and falls on lanes from Bangkok. BAI Spot from India was also falling back slightly over the week - though overall rates from India were a little higher again."

GLP-1 drugs see Europe-Brazil pharma soar for LATAM Cargo

Pharmaceuticals transported by LATAM Cargo between Europe and Brazil grew approximately 150% from January to July compared to the same period last year. This surge was mainly driven by an increase in the transport of GLP-1-based medications, used in treatments for type 2 diabetes. In the first seven months of the year, GLP-1-based medications accounted for approximately 15% of the total volume transported by the company between Europe and Brazil. Including all cargo types, LATAM Cargo moved nearly 32,000 tonnes between the two markets during this period, a 27% increase compared to the first seven months of 2025. Around 75% of this volume consisted of general and consolidated cargo, including automation products, mining machinery, textiles, and commodities. "The growth in pharmaceutical transport demonstrates how demand for specialized logistics solutions is gaining prominence between Europe and Brazil," said Jorge Carretero, cargo sales manager Europe at LATAM Airlines Group. "Our priority is to support this evolution through a safe, efficient operation equipped for the specific requirements of each cargo type. "At the same time, the 27% growth in total volume reinforces the importance of connectivity between both markets and our network's capacity to serve diverse economic sectors." Increased routing options Germany, Belgium, Spain, and Italy were the main countries of origin for cargo transported by LATAM Cargo from Europe to Brazil between January and July, followed by the Netherlands and France. In passenger aircraft belly capacity, the primary routes during the period were Lisbon-São Paulo, Madrid-São Paulo, and Frankfurt-São Paulo. In freighter operations, the Frankfurt-Viracopos and Brussels-Viracopos routes stood out, stated LATAM Cargo. Expanded connectivity between Europe and Brazil has also increased cargo routing options. New passenger routes from Brussels and Amsterdam to São Paulo added capacity to the network, while the freighter service between Brussels and São José dos Campos opened a new logistics alternative connecting European and Brazilian markets.

LX Pantos moves in, eyeing Poland's growing role in European logistics

South Korean logistics group LX Pantos has completed a $167m logistics centre in Katowice, Poland, as it expands its footprint in Central and Eastern Europe. The 109,000 sq metre complex of five buildings was jointly acquired by LX Pantos, the Korea Overseas Infrastructure & Urban Development Corp, and PIS No 2 Fund, the latter under South Korea's Ministry of Land, Infrastructure and Transport, with financing provided in part by Korea Ocean Business Corp. LX Pantos said the facility in Upper Silesia would become a strategic hub for its Eastern European operations, supporting customers in sectors including automotive, consumer goods, and home appliances. It also expects the site to support other Korean companies expanding into Europe. Katowice sits at the intersection of major east-west and north-south transport corridors, with road, rail, and air connections linking Germany, Poland, Ukraine, and northern and southern Europe. The investment comes amid a trend of manufacturers and supply chains shifting towards Central and Eastern Europe. Paweł Kaźmierczak, chief commercial officer of 4R Cargo, told The Loadstar, on the sidelines of Aviation Connect last week, Poland and the wider region had been developing rapidly for several years, citing labour availability and skills, and economic growth as key factors. He pointed to companies also having adopted a "China plus one" strategy following Covid, moving some production into Eastern Europe. The war in Ukraine and subsequent sanctions had accelerated some relocations, he added, including aircraft-parts manufacturing moving to Poland and Slovakia. "We are riding the wave of economic growth," said Mr Kaźmierczak. "We were in the right place at the right time, and we took advantage of that." For logistics providers, industrial expansion is creating demand beyond ecommerce, with Mr Kaźmierczak highlighting pharmaceuticals, aircraft parts, and automotive manufacturing as important cargo flows in the region. Poland's role as a logistics gateway is also being shaped by the war in Ukraine. Mr Kaźmierczak explained: "We see a lot of business coming from Ukraine via Poland and Slovakia, because there's no commercial airlines flying into Ukraine. We're seeing a lot of business coming this way and then flying out of Poland, flying out of Slovakia." And at the same time, Poland remains less exposed to the surge of Chinese ecommerce airfreight seen at some other Central European gateways. Mr Kaźmierczak said Hungary had seen large volumes coming in through Budapest, while Poland saw comparatively limited direct Chinese freighter activity. For LX Pantos, the Katowice investment represents more than additional warehousing capacity, it's a bet on the region becoming an increasingly important production, distribution, and transit base in Europe. Indeed, the company said once completed, the centre would strengthen its global logistics network and provide the infrastructure to meet growing demand in Eastern Europe and neighbouring markets.