Air cargo rates move up marginally: TAC Index

Global air freight rates were slightly higher overall last week, according to the latest data from TAC Index.

"The global Baltic Air Freight Index edged up +0.4 percent in the week to June 16, though still below where it was a year ago by -5.9 percent. Following the recent deal to suspend high tariffs between the U.S. and China for 90 days, there were some expectations rates may enter a new upward trend but that seems to have petered out following the end to the de minimis exemption for small parcels entering the U.S and amid continuing uncertainties about the outlook."

 Rates were lower overall on the busiest lanes from China - both to Europe and the U.S, the update added. "Pure spot rates, as tracked by the new BAI spot indices from Hong Kong – soon to move from private to public trials – were on a downward trend all week. The overall index of outbound routes from Hong Kong, which captures the whole spectrum of spot and contract rates being paid, dipped by -2.4 percent WoW to leave it lower by -11.6 percent YoY. Outbound Shanghai was lower by two percent WoW to leave it down -6.4 percent YoY."

Rates from Vietnam were also a little lower WoW but rates were slightly higher overall WoW from India both to Europe and the U.S. though they also remain a long way lower YoY. "The main exceptions on lanes out of Asia continue to be on routes to Europe from Bangkok and from Seoul – which both remain well up YoY."

Out of Europe, overall rates were up WoW to China but down to Japan, and a little lower overall to the U.S, the update added. "The index of outbound routes from Frankfurt gained +3.4 percent WoW to leave it lower by only -3.4 percent YoY. After some sharp falls and then a rebound in recent weeks, outbound London Heathrow enjoyed a further big gain of +24.3 percent WoW – driven by large increases on rates to South East Asia and the Middle East as well as to the U.S. – leaving it ahead by a very healthy looking +26.7 percent YoY."

From North America, overall rates were a little lower WoW both to Europe and to South America (though still well up southbound YoY) and up WoW to China, the update added.