EXTRANS GLOBAL - Air Freight News - Week 26 2025

Air Cargo General

1) Slight Uptick in Global Airfreight Rates – "Major Routes from China Remain in Decline"

According to the TAC Index, a specialist airfreight rate tracker, the weekly Baltic Air Index (BAI00) as of June 16 showed a 0.4% increase from the previous week but remained 5.9% lower than the same period last year.
Despite expectations of a rate rebound following the 90-day moratorium on high U.S.-China tariffs, the cancellation of the U.S. de minimis policy and ongoing market uncertainties have stalled upward momentum.
While numerically showing a slight increase, rates for core routes from China to Europe and the U.S. have generally declined. Notably, the BAI Spot Index (TAC’s new index tracking pure spot rates) for routes departing from Hong Kong continued to fall throughout the week.
The BAI30, which aggregates all Hong Kong-origin routes, dropped 2.4% week-on-week and a significant 11.6% year-on-year. The Shanghai-origin BAI80 index also fell 2.0% week-on-week, down 6.4% from last year.
Rates for routes from Vietnam to Europe and the U.S. also dipped slightly week-on-week, showing a steep year-on-year decline. In contrast, routes from India to Europe and the U.S. rose slightly week-on-week but remained below last year’s levels.
The only exceptions among Asia-origin routes were those from Bangkok and Seoul to Europe, both maintaining significant year-on-year growth.

2) Draft Negotiable AWB to be Finalized

A UN draft for introducing "Negotiable Electronic Transport Documents" for air cargo and other non-maritime transport is set to be finalized in July.
The proposal aims to establish a document system that proves legal ownership of goods in transit across all transport modes. Unlike maritime Bills of Lading (B/L), which are legally recognized as negotiable documents for transferring ownership, rail, road, and air waybills are currently non-negotiable. The new system will grant negotiable status to multimodal and non-maritime unimodal transport, addressing legal gaps.
Benefits include enabling financial collateral usage, sales, and transfers of goods during air and multimodal transport, as well as maintaining value during mode switches.
Market participants expect this to enhance trade flexibility, expand trade finance applications, and accelerate global supply chain digital transformation (DX). "A single electronic record will cover end-to-end transport, simplifying documentation and significantly improving operational efficiency," they say.

3) Trump’s "Reciprocal Tariffs" Stay in Effect During Appeal – Tariff Pressure Persists via Alternatives

The U.S. Court of Appeals for the Federal Circuit has decided to maintain the validity of former President Trump’s reciprocal tariff measures pending the appeal trial.
On May 28, the U.S. Court of International Trade (CIT) ruled that the president’s unilateral tariff imposition under the International Emergency Economic Powers Act (IEEPA) was unconstitutional and fully invalidated it.
On May 29, the appellate court cited the Trump administration’s request to stay the CIT’s ruling, putting the appeal on hold. The appellate hearing is scheduled for July 31, meaning tariffs will remain in effect for at least two more months.
The final decision is expected from the U.S. Supreme Court, where conservative justices hold a 6-3 majority.
Since the Constitution vests tariff-setting authority exclusively in Congress, it is unlikely the court will reverse the ruling against the president’s unilateral tariff power under IEEPA.
However, tariffs are likely to be maintained through alternative laws like Section 232 of the Trade Expansion Act and Section 301 of the Trade Act.

Section 232 allows the president to impose high tariffs without congressional approval if national security is threatened, as seen in tariffs on steel, aluminum, and automobiles.
Section 301 authorizes the president to investigate and tariff unfair trade practices by other countries.

The CIT ruling proposed using Section 122 of the Trade Act (which allows imposing up to 15% tariffs immediately for 150 days) as an alternative to IEEPA. Thus, the Trump administration is expected to maintain tariffs during the appeal and launch new Section 232 investigations to replace IEEPA-based tariffs.
"With the court ruling against the administration on IEEPA, the likelihood of using Section 232 has increased," with Section 232 cases currently in place or under investigation potentially covering 40% of U.S. trade.
Section 232 tariffs on automobiles, steel, and semiconductors for Japan, South Korea, and the EU pose an immediate threat, more so than IEEPA-based tariffs.

4) EASTAR AIR Selected as "South Korea’s Best LCC" by SKYTRAX

EASTAR AIR was named "Best Low-Cost Carrier (LCC) in South Korea" at the SKYTRAX World Airline Awards 2025, announced on the 19th.
Headquartered in London, SKYTRAX is one of the world’s most authoritative airline evaluation organizations, annually rating services of over 325 global airlines to select the best.
This year marks the first introduction of country-specific categories, with EASTAR AIR honored as South Korea’s inaugural Best LCC.
A EASTAR AIR spokesperson stated, "This result stems from maximizing customer satisfaction through safety and comfort via new aircraft operations, enhanced customer convenience through IT technology, friendly service, and reasonable fares."
EASTAR AIR currently operates 15 aircraft, including five next-generation eco-friendly B737-8s, with plans to add five more B737-8s by the second half of this year.
All incoming aircraft will be new (not second-hand), maintaining the youngest fleet age among domestic LCCs.
Chairman Joong-seok Cho of EASTAR AIR said, "We continue to innovate services across various departments to deliver high satisfaction relative to price. We’re pleased this value has been recognized through the SKYTRAX evaluation."

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