Global air cargo rates trend lower: TAC Index

In another hugely volatile week for global markets, overall air freight rates trended narrowly lower, according to the latest data from TAC Index.

"The global Baltic Air Freight Index calculated by TAC was down -1.4 percent over the week to April 14, leaving it still ahead by +3.2 percent year-on-year. That said, spot rates appeared to be trending sharply lower in recent days, sources reported, and market participants are highly nervous about the outlook for May despite the Trump administration putting most tariff hikes on hold and announcing an exemption - for now - for key items like smartphones, computers and semiconductors."

Overall rates on the busiest lanes out of China were not changed much – slightly lower to Europe but also slightly higher to the U.S, the update added. "The index of outbound routes from Hong Kong slipped -3.7 percent WoW to leave it only slightly below last year’s level. Outbound Shanghai declined 0.6 percent WoW to leave it still up by +4.2 percent YoY. Rates out of some other locations in Asia such as Vietnam were also falling, though rates from India were slightly higher to Europe."

Out of Europe, rates were generally firmer last week on lanes to the U.S. and to China, though a little lower to Japan. "The index of outbound routes from Frankfurt dipped by a further -1.3 percent WoW – dragged down by lower rates to North America, though it is still ahead by +10.3 percent YoY. Outbound London dropped again too, shedding -3.9 percent WoW to leave it still in negative territory by -9.4 percent YoY."

From the Americas, rates were generally rising again on lanes to China, though not to Europe or to South America. The index of outbound routes from Chicago gained a further +6.1 percent WoW, adding to the previous week’s rise to leave it ahead by +18.2 percent YoY, the update added.