More air cargo capacity comes on stream but rates steady

Global air freight prices continue to be firm despite more capacity coming on stream over the summer, 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 was up 1.7 percent in the week to June 17, putting it ahead by 6.8 percent over 12 months with sources citing some continued switching of business from sea to air by shippers, particularly on routes from Asia to Europe," says the update.

The index of outbound routes from Hong Kong gained another two percent WoW to put it ahead by 21.4 percent YoY with rates edging up both to Europe and North America. "Outbound Shanghai was a tad lower WoW but still ahead by 35.7 percent YoY. Rates out of India were little changed and out of Vietnam up again to Europe but lower to the U.S."

The index of outbound routes from Frankfurt bounced back from the previous week’s fall by 7.8 percent WoW with rates rising again on all major lanes leaving the YoY decline at -22.3 percent. Outbound London was also up by 1.6 percent WoW, leaving the YoY fall at -40.4 percent.

From the Americas, rates from Chicago were up 2.8 percent WoW, helping cut the YoY decline to -26.5 percent. Overall, rates from the U.S. were down a little to Europe, China as well as South America, the update added.