Global air freight rates are continuing to rise, according to the latest data from TAC Index.
“The overall Baltic Air Freight Index (BAI00), calculated by TAC, was up a further 4.6 percent in the week to December 11, cutting its yearon-year fall to only 10 percent though some market sources now expect this strong peak season surge to start tapering off as the year comes to an end,” says an official report.
The overall trend continues to be led by higher rates out of China, driven largely by e-commerce business. The index of outbound rates from Hong Kong gained 7.1 percent WoW, putting its YoY change at +12.8 percent. The outbound Shanghai index gained another 4.2 percent WoW with gains on most major lanes putting it too well ahead YoY by +18.5 percent.
Rates out of Europe, on the other hand, “continue to languish a long way below last year’s levels with general cargo demand – aside from ecommerce – remaining soft. Outbound Frankfurt gained 1.8 percent WoW but remained at -48.4 percent YoY with rates still sliding on some lanes to China and the U.S. Outbound London gained 4.3 percent WoW with gains on all major lanes but still shows a drop of 60.4 percent YoY.”
Outbound Chicago slipped 1.4 percent and is down 31.3 percent YoY though overall Transatlantic rates between the U.S. and Europe were rising a little in both directions.
It was a quiet week after some huge recent gains on rates out of Vietnam though rates from India were still rising, the update added.