Air cargo rates steady despite extra capacity: TAC Index
Overall rates from the U.S. were rising to Europe but falling both to China and South America.
Global air freight rates were little changed during the week to August 19, according to the latest data from TAC Index, the leading price reporting agency for air freight.
The overall Baltic Air Freight Index calculated by TAC was off by only -0.1 percent – maintaining the solid pattern of recent weeks and taking the year-on-year gain to +10.8 percent. "Sources said the market is generally holding steady, despite it being the summer season when rates usually ease due to extra passenger bellyhold capacity."
While there was a lot of movement up and down on individual lanes, there was little change overall from the big hubs out of Asia, the update added. "The index of outbound routes from Hong Kong gained 0.6 percent WoW, taking its YoY gain to +22.9 percent. Outbound Shanghai slipped -1.2 percent WoW, leaving its YoY rise at +28.1 percent. There were further gains on rates from Seoul to Europe, newly added to the data the previous week. While rates fell back out a little out of India after the huge gains earlier this year, rates from Vietnam were falling to Europe though rising again to the U.S."
The index of outbound routes from Frankfurt fell -2.4 percent WoW, with rates to North America as well as to China both slipping a little, leaving the decline YoY at -18.4 percent. Outbound London eased by -0.8 percent WoW, leaving the YoY at -18.8 percent.
From the Americas, the index of outbound routes from Chicago gained +2.7 percent WoW, led again by higher rates to South East Asia, reducing the YoY decline to -14.7 percent, the update added. Overall rates from the U.S. were rising to Europe but falling both to China and to South America, particularly on the lanes out of Miami following some strong recent gains.
