Air freight rates continue to be weak: TAC Index
Decline led again by softer rates on routes out of the big hubs in China
Global air freight prices continue to trend lower following Chinese New Year, according to the latest data from TAC Index, the leading price reporting agency (PRA) in air freight.
The overall Baltic Air Freight Index, calculated by TAC, fell a further 5.7 percent in the week to February 26, a second successive weekly decline leaving it at -25 percent over 12 months.
The decline was led again by softer rates on routes out of the big hubs in China, the update added. "The index of outbound routes from Hong Kong dropped 5.8 percent WoW on thin volumes leaving it lower by 15.8 percent YoY. Outbound Shanghai plummeted 10.7 percent WoW to leave that at -6.6 percent YoY."
That contrasted with rates out of some other major hubs in Asia with strong gains again for a second successive week on rates from India both to Europe and to the U.S. as well as from Vietnam to the U.S., the update added.
Rates out of Europe also had a firmer tone. The index of outbound rates from London Heathrow edged up 1.8 percent WoW though still a long way down (49.4 percent) YoY. Outbound Frankfurt gained 1.5 percent WoW to leave it at -38.4 percent YoY.
Out of the U.S., rates from Chicago fell back again by 5.5 percent WoW to leave that index at -42.4 percent YoY. Rates out of the U.S. were generally declining both to China and to Europe but showed sharp gains again to South America, the update added.
