Air cargo rates decline across major lanes: TAC Index
Overall rates out of China have not yet fallen as much as some feared, with rates to Europe slightly up.
Global air freight rates fell again last week, according to the latest data from TAC Index.
"The global Baltic Air Freight Index calculated by TAC fell some -4.5 percent in the week to May 5. Rates had been holding up quite well so far in 2025 compared to a strong and rising market in 2024 – with shippers racing to transport goods ahead of higher tariffs into the U.S. – but have now fallen into negative territory year-on-year by -5.7 percent," the update added.
Overall rates out of China have not yet fallen as much as some feared, with rates to Europe slightly up again over the latest week though down on lanes to the U.S. "The index of outbound routes from Hong Kong dropped another -3.3% percent WoW, leaving it at -7.4 percent YoY. Outbound Shanghai fell -2.4 percent WoW, taking its decline to -8.6 percent YoY. Rates out of India were also falling to the U.S. while rates out of Vietnam and Bangkok dropped on lanes to Europe."
With the EU now threatening tariffs in retaliation to the U.S., overall rates were declining both on Transatlantic routes as well as to China, the update added. "The index of outbound routes from Frankfurt fell five percent WoW with falls on all major lanes, though remains still up by +1.6 percent YoY. Despite gains on lanes to the Middle East, outbound London Heathrow fell steeply by -10.1 percent WoW, dragged down by sharp falls on lanes to South East Asia – leaving it down -26.8 percent YoY."
From the U.S., rates were falling both to Europe and South America, though slightly up on lanes to China. The index of outbound routes from Chicago dropped -10.1 percent WoW but remains ahead by +30.2 percent YoY, the update added.
