Air cargo rates likely to see more gains: TAC Index

Global air freight rates were little changed during the week to September 9, according to the latest data from TAC Index, the leading price reporting agent in air freight markets.

The overall Baltic Air Freight Index calculated by TAC edged lower by one percent, leaving it ahead by +14.1 percent over 12 months. "Sources suggest further gains ahead, given launches of new products including mobile phones, large orders to move solar panels, more sea-to-air conversions and yet further growth in e-commerce."

The index of outbound routes from Hong Kong edged up marginally, led by higher rates to North America, taking its YoY gain to +21.1 percent, the update added. "Outbound Shanghai eased lower by -1.8 percent WoW, though its YoY change is still impressive at +30 percent. Elsewhere out of Asia, it was a mixed week with rates from Vietnam mostly falling and rates from India lower on lanes to Europe though higher to the U.S. but with a sharp gain WoW from Bangkok to Europe."

Out of Europe, the index of outbound routes from London Heathrow maintained its recent upward momentum with a gain of +1.8 percent WoW, also led by higher rates to North America, helping cut its YoY decline to -5.2 percent. "Outbound Frankfurt was lower again by -6.2 percent WoW – with higher rates to China more than offset by falling rates to North America and South East Asia – leaving its YoY decline at -16.9 percent."

From the Americas, the index of outbound routes from Chicago gained +1.5 percent WoW, helping cut its YoY fall to only -1.6 percent. Overall rates from the U.S. were rising both to Europe and to China though flat to down on routes to South America, the update added.