Air freight rates stay firm even as more capacity comes on stream
Air cargo news was dominated by a reported crackdown on compliance with rules on e-commerce into the U.S.
Global air freight prices have continued their recent upward momentum, according to the latest data from TAC Index, the leading price reporting agency (PRA) on air freight.
The overall Baltic Air Freight Index calculated by TAC edged up marginally (+0.2%) in the week to June 3, putting it ahead now by 6.4 percent over 12 months – continuing the recent trend of rates staying strong through what is normally a season when rates ease due to more capacity coming on stream, the update added.
"Air cargo news was dominated by a reported crackdown on compliance with rules on e-commerce into the U.S. with reports suggesting disruption for customs brokers – though sources told TAC the reports were overblown with most big brokerage houses already having effective compliance in place."
The index of outbound routes from Hong Kong edged up one percent WoW to put it ahead by 15 percent YoY. "Outbound Shanghai was lower by -1.8 percent WoW though still ahead by 41.4 percent YoY – with rates to the U.S. falling but rising to Europe. Rates out of India were also rising strongly to Europe, and up again generally out of Vietnam."
Out of Europe, there was a rebound after last week’s fall in rates from Frankfurt with a gain of 6.6 percent WoW, boosted by strong increases to China and South East Asia, cutting the YoY decline to -26 percent. Outbound London dropped by another -3.7 percent, with falls on most major lanes pushing the YoY decline to -39.8 percent.
From the Americas, rates from Chicago edged up (1.3 percent) WoW, helping trim the YoY decline to -17.7 percent. Overall, rates from the U.S. were rising across the board – to Europe and to South America as well as to China, the update added.
