Air cargo markets quiet ahead of peak season rally

Air freight markets remained relatively quiet during the week to October 14, according to the latest data from TAC Index.

The global Baltic Air Freight Index calculated by TAC edged lower by -1.2 percent, leaving its gain over 12 months at 5.4 percent.

"With factories only starting to spool up again after the Golden Week holiday, average rates from China were slightly lower both to the U.S. and to Europe - though sources said spot rates were already edging up again as the market heads toward peak season."

The index of outbound routes from Hong Kong was up slightly, led by higher rates to Europe, leaving its gain at +8.1 percent YoY. Outbound Shanghai was lower marginally WoW, leaving its YoY gain at +13.2 percent. Rates out of Vietnam and Bangkok were a little lower too as well as out of India to the U.S. though higher again to Europe, the update added.

Out of Europe, rates overall were rising strongly again on many routes including to the U.S. and Japan as well as to China and the Middle East, amid fears of escalating conflict between Israel and Iran. "However, the index of outbound routes from Frankfurt fell again -2.5 percent WoW despite a rise in rates to China, leaving its YoY decline at -18.7 percent. Outbound London edged higher, led by rising rates to the U.S., leaving its YoY gain at 3.2 percent."

From the Americas, the index of outbound routes from Chicago gave back a chunk of its huge gain of the previous week, falling -9.7 percent WoW to leave the change YoY exactly at +0.0 percent. Overall, rates from the U.S. were falling again both to Europe and to China as well as to South America – following news of the dock workers’ strike on the East Coast being postponed while further talks take place, the update added.