Global air freight rates unchanged ahead of low season: TAC Index

Global air freight prices were little changed during the week to May 13, 2024, reflecting a market that is still relatively robust for what is normally the beginning of the low season, according to the latest data from TAC Index, the leading price reporting agency (PRA) for air freight.

The overall Baltic Air Freight Index calculated by TAC declined 0.8 percent over the week ending May 13, 2024, leaving it slightly ahead by one percent over the last 12 months, says the update.

The flat rates follow a strong run on big lanes out of China – driven mainly by e-commerce activity, sources suggest, with some adding that capacity for block space agreements (BSAs) is already getting booked up for peak season later in the year. "The latest data, however, showed the index of outbound routes from Hong Kong easing by -0.8 percent WoW to leave it at +12.9 percent YoY. Outbound Shanghai was flat though still a long way up YoY at +33.8 percent. Lanes out of India and Vietnam were mostly lower again after big recent gains."

Out of Europe, despite a bounce in rates to Japan, the market in general continued to be soft with the index of outbound routes from Frankfurt dropping 3.3 percent WoW to leave it at -34.6 percent YoY. Outbound London Heathrow was also off by 2.1 percent WoW to leave that index with a very similar decline of -34 percent YoY.

"From the Americas, the index of outbound routes from Chicago edged up +0.9 percent WoW to leave that index at -28.9 percent YoY. Overall rates from the U.S. were rising both to Europe and to China, though falling a little to South America."