Air freight rates are rising: TAC Index

Global air freight prices are rising, according to the latest data from TAC Index.

"The overall Baltic Air Freight Index calculated by TAC was up by 6.4 percent in the week to January 29, cutting its decline over the past 12 months to 24.2 percent.

The increase is in line with expectations that rates may spike following disruption to ocean shipping in the Red Sea though sources also point out that rates often rise in the runup to Chinese New Year, the update added.

"Out of Asia, the index of outbound routes from Shanghai was up sharply by 8.8 percent WoW to leave it at only -2.1 percent YoY, led by big increases to Europe. Outbound Hong Kong gained 5.9 percent WoW, trimming its YoY decline to 11.8 percent. There were also big gains of 10 percent+ WoW on rates out of South East Asia, not least from Vietnam but also from Bangkok."

Rates out of Europe continue to be more mixed. "Outbound London Heathrow rose 5.9 percent WoW with gains on all major lanes. Outbound Frankfurt was lower again (2.8 percent WoW) with rates declining both to China and to the U.S."

From the U.S., after some recent declines, there was a chunky increase in the index of outbound Chicago rates of 14.7 percent WoW to leave that at -44.1 percent YoY. "Overall, rates out of the U.S. were rising strongly on most major lanes including to South America as well as to China."