Air freight rates decline marginally: TAC Index

Global air freight rates eased lower during the week ended August 5, according to the latest data from TAC Index, the leading price reporting agency (PRA) for air freight.

The Baltic Air Freight Index calculated by TAC was down by -1.2 percent, though still up +8.9 percent over 12 months.

"The latest data maintains the firm tone of this year – though yet to register any reaction from the financial market selloff since late last week led by a sharp fall in the Nikkei index in Japan, falling oil prices and big jump in volatility measured by the VIX index, which some think may now lead to a softer peak season than previously anticipated."

Rates on the big lanes out of China barely moved over the week, the update added. "The index of outbound routes from Hong Kong edged down marginally WoW to leave it still up by +21.3 percent YoY. Outbound Shanghai fell -0.7 percent WoW to leave it still well ahead by +30.4 percent YoY. Overall rates from China were up yet again WoW both to Europe and to the U.S. and only slightly lower from Vietnam – though there was a bigger fall WoW from India to Europe."

Out of Europe, rates fell back again with the index of outbound routes from Frankfurt declining 3.7 percent WoW to leave it lower by -24.6 percent YoY. Despite higher rates on lanes to North America the outbound London index fell -6.4 percent WoW to leave it lower by -23.7 percent YoY.

From the Americas, the index of outbound routes from Chicago was also off by -2.2 percent WoW to leave it lower by -20.2 percent YoY. Overall rates from the U.S. were rising to Europe but falling on lanes to China and South America, the update added.