News / Airfreight rates ex-Dhaka plummet post-holiday, alongside demand

© Matyas Rehak |

Airfreight rates have generally begun to ease off as volumes lower following the holiday period – but some lanes have fallen faster than others. 

Air rates out of Dhaka have almost halved in the past month or so to both the US and EU, with demand falling fast. Rates per kg to Europe out of Dhaka have fallen to between €3.40 and €4, from about €7 two months ago.  

According to Rotate’s database, capacity out of Dhaka has fallen 2.8% from the past month, compared with the previous month, but there was still some 15% more capacity out of Bangladesh in December than a year earlier. 

To the US, Bangladesh forwarders are reporting rates of between $5.5 and $7 per kg, down from $10 two months ago, with current demand of about 500 to 600 tonnes a day out of Dhaka. 

“The rates have fallen as demand to the main export destinations has lessened,” said Nasir Ahmed Khan, vice president of the Bangladesh Freight Forwarders Association (BAFFA). “Almost all the winter season orders have already been sent. Also, in major destinations, Christmas-linked holidays are still ongoing.” 

BAFFA VP Nurul Amin added: “Air freight rates depend on capacity from airlines and cargo demand. Presently, demand has fallen, since many European and US offices are yet to be opened, so the rates have fallen.” 

“Rates can also vary depending on the size of shipment, with lower prices for a shipper with larger volumes.” 

Despite rising competition from India in the apparel market, between January and November last year, Bangladesh’s apparel exports grew 6.23%, amounting to $37.71bn.  

Md Anwar Hossain, vice chairman of the Export Promotion Bureau, said: “Export of goods from Bangladesh is rising each month and has seen significant growth. During July to December 2024, overall exports increased by 12.84% compared with the same period in 2023. 

Global airfreight rates have also eased in the first week of the year, according to TAC Index. The Baltic Air Freight Index fell 3.7% week on week – but remains considerably higher than a year ago, up 25.9%. 

The largest other declines were seen out of China, with rates out of Hong Kong down 11.1% week on week, while outbound Shanghai fell 6.8% – although both markets are still well up on last year.

Rates to Europe are rising out of Bangkok and Vietnam, while rates out of Europe are also rising, with outbound Frankfurt up 19.8%, driven by the transatlantic. Outbound Chicago saw rates rise 16.3% week on week, said TAC Index today.