China lanes continue to drive air freight rates higher: TAC Index

Global air freight rates continue to rise, mainly driven by China lanes, according to the latest data from TAC Index.

The overall Baltic Air Freight Index, calculated by TAC, gained 3.1 percent in the week to March 25 – a fourth consecutive weekly increase helping cut the decline over 12 months to -18.5 percent.

"There were significant increases again on the big lanes from China with sources citing continuing strong demand in e-commerce plus further upcoming product launches. The index of outbound routes from Hong Kong gained 4.5 percent WoW cutting its YoY fall to only -2.5 percent. Outbound Shanghai was up 3.8 percent WoW trimming its YoY decline to -9.2 percent. There were also notable further gains on rates from elsewhere in Asia, including big surges from Vietnam to the U.S. as well as from India again to the U.S. – with rates also rising strongly from both locations to Europe as well."

Out of Europe, however, activity was more muted with rates falling back again overall after recent gains, the update added. The index of outbound routes from Frankfurt slipped 4.8 percent WoW with declines on most major lanes leaving it at -37.3 percent YoY. Outbound London also fell WoW by two percent even though rates were rising again to North America, leaving it down 45.3 percent YoY.

Out of North America, the index of outbound routes from Chicago zoomed 10.9 percent after recent falls, led by gains on rates to South East Asia as well as to Europe – leaving it at -37.7 percent YoY. Overall, rates from the U.S. were rising both to Europe and to China though falling back a little to South America, the update added.