Global air freight rates continue rally: TAC Index

Global air freight rates continued to increase, according to the latest data from TAC Index, the leading price reporting agency (PRA) for air freight markets.

"The overall Baltic Air Freight Index calculated by TAC rose for a second successive week by 3.6 percent in the week to March 11 – to leave it lower by only 21.1 percent over 12 months."

Rates from China rose again with the index of outbound routes from Hong Kong up 3.7 percent WoW to leave it down nine percent YoY, the update added. "Out of Shanghai, rates were rising on nearly all lanes to push that index up 6.9 percent WoW, leaving it at -9.6 percent YoY. Rates from elsewhere in Asia rose even more sharply, including from Vietnam. But the most eye catching gains WoW were once again from India with double digit gains not just to Europe, where shippers have been switching more to air cargo following disruption to ocean traffic in the Red Sea, but also to the U.S."

Out of Europe, price patterns were more mixed with rates on routes out of Frankfurt surging 14.3 percent, driven by gains on all major lanes, cutting the YoY decline to 33.5 percent. On the other hand, rates were falling on most lanes out of London causing a WoW decline of 7.9 percent to leave the YoY drop at 47.4 percent.

From the U.S., the index of outbound routes from Chicago dropped by some 10.5 percent WoW, mostly due to a sharp fall in rates to South East Asia. From North America in general, however, rates were mostly rising WoW on all major lanes, including to South America as well as to Europe and China, the update added.