Global air freight rates eased lower during the first week of the year, according to the latest data from TAC Index.
The global Baltic Air Freight Index fell -3.7 percent over the week to January 6 as the traditional peak season period ended and volumes declined, the update added. “Nevertheless, the index starts the year comfortably above where it was 12 months ago – when there had been a steep fall after peak season – to leave it ahead by some +25.9 percent year-on-year, and the outlook is still relatively buoyant.”
The fall in rates over the week was most pronounced on the big export lanes out of China with falling spot rates leading the overall indices lower, the update added. “The index of outbound routes from Hong Kong dropped -11.1 percent WoW, though is still in positive territory by +14 percent YoY. Outbound Shanghai dropped by -6.8 percent WoW, though still well ahead by some +37.6 percent YoY. Rates to Europe were still rising out of Bangkok and Vietnam, though falling from Vietnam to the U.S. – and slightly lower on lanes from India in both directions.”
Out of Europe, rates were generally rising on major lanes to China and Japan as well as to the U.S. The index of outbound routes from Frankfurt surged +19.8 percent WoW, led by a sharp rise in rates on Transatlantic routes during the first week of the year, leaving the index ahead by +40.8 percent YoY. Outbound London also saw rates to North America rising but fell overall by -5.8 percent WoW to leave it ahead by +19.4 percent YoY.
The index of outbound routes from Chicago also saw a big rebound from the holiday lull during the first week of the year, surging +16.3 percent WoW to leave it ahead by +30.9 percent YoY, the update added.