Air freight rates steady during Golden Week holiday: TAC Index

Air freight markets were relatively quiet during the week to October 7 – as is often the case during the Golden Week holiday in China, according to the latest data from TAC Index.

The overall Baltic Air Freight Index calculated by TAC dropped -2.3 percent, trimming its gain over 12 months to +4.2 percent.

"Although local factories usually shut down for the week and volumes drop, rates on the busiest lanes out of China still moved more or less in line with the global index. The index of outbound routes from Hong Kong was lower by only -2.1 percent WoW but with declines on most major lanes cutting its gain to +7.5 percent YoY. Outbound Shanghai was lower by -3.4 percent WoW, leaving its YoY gain at +13.3 percent."

Rates out of Vietnam were also a little lower as well as out of India to the U.S., though slightly higher again to Europe, as they were also from Bangkok, though not from Seoul, the update added.

The rates out of Europe fell sharply with falls on many routes including to the U.S., Japan and China. The index of outbound routes from Frankfurt plunged -10.6 percent WoW, reflecting some steep falls on rates to destinations like Shanghai and pushing the YoY decline to -21.8 percent. Outbound London was off -8.2 percent WoW, putting it narrowly back in negative territory YoY by one percent.

From the Americas, the often volatile rates on routes from Chicago bucked the downward trend, and zoomed +19.3 percent WoW with sharply rising rates both to Europe and to South East Asia, helping trim the decline to only -1.8 percentYoY. Overall rates from the U.S. were rising both to Europe and to China as well as to South America with shippers taking on board the news of a dock workers’ strike on the East Coast and then the news that it was postponed while further talks take place.