Air freight rates continue to rally: TAC Index

Global air freight rates were a little stronger again for the week ended August 26, according to the latest data from TAC Index.

The overall Baltic Air Freight Index calculated by TAC was up +3.3 percent, leaving it ahead by +16.6 percent year-on-year, the update added. "The latest numbers confirm that the firm tone of the market over the summer – when prices usually dip ahead of peak season – has continued. Sources are divided about whether peak season arrived early or whether there is a further surge to come due to limited capacity."

Rates remain firm on the big lanes out of China with the index of outbound routes from Hong Kong up +1.9 percent WoW to leave it ahead by +23.3 percent YoY. "Outbound Shanghai rose +4.3 percent WoW, led by higher rates to Europe, pushing its YoY gain to +33.3 percent. Rates from elsewhere in Asia were mixed with rates from India higher again to Europe but lower to the U.S. while rates from Vietnam were higher to the U.S. but lower to Europe."

There were big gains on rates out of Europe with the index of outbound routes from Frankfurt gaining +6.7% WoW with gains on all major lanes helping cut the YoY decline to -9.3 percent, the update added. "Outbound London saw an even bigger gain of +8.8 percent WoW, led by a sharp rise on lanes to North America which helped trim the YoY fall to only -6.1 percent."

Out of North America, the index of outbound routes from Chicago bucked the rising trend with a drop of -4.9 percent WoW leaving a YoY decline of -4.6 percent. Overall rates from the U.S. were rising both to South America and to China, though falling back a little to Europe, the update added.