Air freight rates marginally lower ahead of peak season

Air freight rates overall declined marginally during the week ended November 18, according to the latest data from TAC Index.

"The global Baltic Air Freight Index calculated by TAC edged lower by -1.6 percent, a somewhat weaker number than many might have expected earlier this year for a period when the market enters the height of peak season. That said, the index still remains above its level at the same time last year by exactly one percent when the market was entering a very pronounced peak season spike."

Spot rates were continuing to trend up last week out of China, particularly on Trans Pacific lanes to the U.S. East Coast, the update added. "The index of outbound routes from Hong Kong was up by +1.9 percent WoW with gains on most major lanes keeping it narrowly ahead YoY. Outbound Shanghai was lower -2.8 percent WoW, reflecting declines on most major lanes from there, though still ahead by + four percent YoY. Elsewhere out of Asia, there were further gains WoW on rates out of Vietnam both to Europe and to the U.S. Out of India, rates were rising again to the U.S. but lower to Europe."

Out of Europe, rates were rising overall to most major destinations including China, Japan and the U.S., the report added. "The index of outbound routes from Frankfurt slipped a tad by -1.3 percent WoW to leave it in negative territory by - four percent YoY. Outbound London Heathrow (BAI40) fell back by -6.5 percent WoW after recent gains – though is still ahead some +10.1 percent YoY."

From the Americas, the index of outbound routes from Chicago declined 10 percent WoW to leave it lower by seven percent YoY. "Overall rates from the U.S. were falling again both to Europe and to China, though still rising to South America – particularly from Miami, which is by far the biggest airport by volume for trade to the south, leaving rates on those lanes a long way up YoY."