Air freight rates continue decline: TAC Index
Overall Baltic Air Freight Index was down 6.6% in the week to January 8, putting it lower by 31.8% over 12 months
The disruption to ocean traffic in the Red Sea is yet to have any dramatic effect on air cargo rates, according to the latest data from TAC Index.
"After falling sharply over the Christmas to New Year period as peak season came to an end, the overall Baltic Air Freight Index shed a further 6.6 percent in the week to January 8, putting it lower by 31.8 percent over 12 months."
Having dropped over the holiday period, rates out of China fell further in the first week of the year, with the index of outbound rates from Hong Kong losing a further 5.9 percent WoW to leave it lower by 15.5 percent YoY, the update added. "Outbound Shanghai fell even more by 7.3 percent WoW to leave it down 27.9 percent YoY though rates to Europe were edging up amid signs of some shippers switching to combined sea-Air transport options, using sea lanes from Asia to the Middle East and then on by air to Europe to meet delivery deadlines. Some sources expect to see more of that in the coming weeks as many factories have only just started to spool up again since New Year."
Index levels were lower from all major outbound locations though less again from Europe – with outbound Heathrow only down 1.1 percent WoW, boosted by higher rates to South East Asia, though still down -50.6 percent YoY. Outbound Frankfurt fell 4.9 percent WoW though it was also seeing higher rates to South East Asia, to leave that index at -44.8 percent YoY.
Rates were falling more steeply on many lanes out of the U.S. with outbound Chicago falling 12.7 percent WoW to leave it at -54 percent YoY. "Rates from the U.S. were falling both to Europe and China but rising again to South America, including a gain of +5.6 percent WoW from Miami."
