Global air freight rates edging up: TAC Index

Global air freight rates are still edging up, according to the latest data from TAC Index, the leading price reporting agency (PRA) in air freight.

"The overall Baltic Air Freight Index was up another 1.6 percent in the week to October 30, leaving it lower by 30.2 percent over 12 months but completing a second successive stronger month, reflecting a genuine, if modest, peak season bounce with gains on rates from all major outbound locations around the world."

Activity out of southern China continued to lead the way with the index of outbound Hong Kong routes up 2.3 percent WoW, cutting its YoY fall to only 16.4 percent with rises on routes both to Europe and North America. "The data, however, did show a wide dispersion in rates achieved out of China. And outbound Shanghai only edged up slightly by (0.5 percent WoW), leaving it at -22 percent YoY, showing a rise on rates to Europe but with prices to the U.S. slipping."

Outbound Frankfurt increased 3.8 percent WoW, leaving it at -44.3 percent YoY boosted by a sharp rise to North America. Outbound London also eked out a one percent gain WoW on the back of higher rates to the U.S. – though still a long way down YoY at -59.2 percent.

Transatlantic rates have been rising in both directions with gains to Europe helping lift the outbound Chicago index and trimming its YoY decline to 42.5 percent. Overall rates from the U.S. to China also showed a solid increase on the week. Rates out of India and Vietnam were also mostly higher again after punchy recent increases, and also from Bangkok to Europe, newly added to the index for the first time this week, the update added.