Air Freight Rates Rise Amid Red Sea Crisis

An employee checks freight at a ramp of Frankfurt airport, Germany, November 27, 2020. REUTERS/Ralph Orlowski/File Photo Acquire Licensing Rights
An employee checks freight at a ramp of Frankfurt airport, Germany, November 27, 2020. REUTERS/Ralph Orlowski/File Photo Acquire Licensing Rights
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Air Freight Rates Rise Amid Red Sea Crisis

An employee checks freight at a ramp of Frankfurt airport, Germany, November 27, 2020. REUTERS/Ralph Orlowski/File Photo Acquire Licensing Rights
An employee checks freight at a ramp of Frankfurt airport, Germany, November 27, 2020. REUTERS/Ralph Orlowski/File Photo Acquire Licensing Rights

Global air freight rates have climbed for the first time in seven weeks as attacks on Red Sea shipping prompt companies to secure costlier air cargo space.

The Baltic Air Freight Index, which shows general cargo weekly transactional rates across a number of routes, rose 6.4% in the week to Monday, price reporting agency TAC Index said, reversing declines since a mid-December seasonal peak.

Attacks by Yemen's Iran-aligned Houthi group on vessels in the Red Sea, launched to express solidarity with Palestinians in Gaza, have forced shippers to take longer routes that can add weeks to delivery times, Reuters reported.

"The increase is in line with expectations that rates may spike following disruption to ocean shipping in the Red Sea, though sources also point out that rates often rise in the run-up to Chinese New Year," TAC Index said.

Many factories in China close for the 8-day holiday which begins this year on Feb. 10 and companies push to get stock out to customers ahead of this.

Air freight rates out of Shanghai rose 8.8% week on week on Monday, led by big increases to Europe. Rates out of Hong Kong gained 5.9% and rates out of Southeast Asia jumped 10%.

The Red Sea, which leads to the Suez canal, lies on the key east-west trade route from Asia's manufacturing hubs to Europe and then on to the east coast of the Americas.

In recent weeks freight companies have been securing more air cargo space and some customers have begun shipping goods wholly or partially by air to avoid delays.

However air freight prices had remained relatively stable as the shipping crisis coincided with a post-Christmas lull in demand.



Qatar National Bank Completes Unsecured $2 bn Inaugural Asian Syndicated Loan

Qatar National Bank Group (QNA) 
Qatar National Bank Group (QNA) 
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Qatar National Bank Completes Unsecured $2 bn Inaugural Asian Syndicated Loan

Qatar National Bank Group (QNA) 
Qatar National Bank Group (QNA) 

Qatar National Bank (QNB) Group, a Qatari public company, announced on Sunday the successful closing of a $2 billion unsecured syndicated term loan facility, focused on Asian investors.

QNB Group Chief Executive Officer Abdulla Mubarak Al Khalifa said, “This facility has attracted strong interest from major Asian banks, enabling us to further diversify our investor base.”

He noted that the issuance was oversubscribed at competitive all-in pricing, which, despite challenging global market conditions, reaffirms the bank’s reputation as a high-quality issuer.

“We view this transaction as a testament to our successful strategy of strengthening our presence as a leading bank in MEASEA while fostering meaningful, long-term relationships,” Al Khalifa said.

QNA Group said the $2 billion facility with a maturity of 5 years is the largest ever Asian pure play syndication by a bank from the GCC has achieved tightest pricing.

It added that this successful transaction involved a largely new investor base and underlines QNB’s strong credentials and is a part of QNB’ strategy to further broaden its relationships worldwide.