Air cargo rates out of Europe head higher: TAC Index

Global air freight rates firmed up a little more during the week to September 16, according to the latest data from TAC Index, the leading price reporting agent in air freight.

The overall Baltic Air Freight Index calculated by TAC was up a further +0.9 percent, leaving its increase over 12 months at +14.9 percent. "Although the index was little changed after a stronger than usual summer, there were some slightly more marked spikes at the higher quintiles in the range of rates achieved – especially on the big lanes out of China. Some sources suggest this may presage the onset of the usual peak season surge though others remain sceptical this year’s spike will prove to be quite so pronounced as last year."

The index of outbound routes from Hong Kong edged up marginally, taking its gain YoY to +21.6 percent, the update added. Outbound Shanghai declined, leaving its YoY gain at +27.9 percent. "There was not much change WoW in rates out of either India or Vietnam where market levels appear to have paused after massive gains earlier in the year."

Rates out of Europe were heading higher, maintaining their recent upward trend, the update added. The index of outbound routes from London surged +11.4 percent WoW with gains on all major lanes pulling it back into positive territory for the first time in many months by +10.8 percent YoY. Outbound Frankfurt was up +1.9 percent, led by higher rates to North America.

The index of outbound routes from Chicago declined, leaving it in negative territory by -10.6% YoY. Overall rates from the U.S. spiked WoW on lanes to South America and Europe but lower on lanes to China, the update added.