Global trade gains push air cargo rates higher: TAC Index

Global air freight prices edged a little higher again, according to the latest data from TAC Index. The overall Baltic Air Freight Index calculated by TAC was up 2.1 percent for the week to May 6, leaving it now close to flat at -2.2 percent over the last 12 months.

"The ongoing strength of the market follows recent predictions of an uptick in global trade from the OECD, IMF and World Trade Organization – and some sources anticipating tight capacity for peak season later this year," says the update.

Rates on the big lanes out of China mostly maintained the positive momentum of recent weeks and months. The index of outbound routes from Hong Kong was up 0.6 percent WoW to leave it ahead by 11.2 percent YoY. Outbound Shanghai was up 1.6 percent WoW to put it ahead by 29.9 percent YoY. Other major lanes out of Asia were mixed after recent big gains with rates from both Vietnam and India higher again to the U.S. but lower on routes to Europe, the update added.

Gains in rates were pretty broad-based last week around the world. In Europe, the index of outbound routes from London gained 6.5 percent WoW, led by higher rates to South East Asia, trimming its YoY decline to -39.2 percent. Outbound Frankfurt edged up marginally, led by higher rates to North America.

From the Americas, outbound Chicago bounced after recent falls, gaining 11.7 percent WoW and reducing the YoY decline to -29 percent. Overall rates from the U.S. were rising again to China and to South America, though a little lower to Europe, the update added.