Global air freight rates continued to edge higher last week as the market entered the zenith of its traditional peak season period, according to the latest update from TAC Index.
“The global Baltic Air Freight Index calculated by TAC was up +0.5 percent in the week to November 25, an increase of +4.1 percent over the last four weeks, though slightly lower (-1.6 percent) from 12 months ago when there was a pronounced peak season spike.”
Overall rates from China were slightly lower WoW both to Europe and to the U.S., the update added. “This perhaps reflected a lot of business going through at lower rates on previously agreed block space agreements (BSAs) with sources reporting that spot rates were on the rise, and the upper quintile in the range of prices paid was indeed still increasing.”
The index of outbound routes from Hong Kong was up again by +1.6 percent WoW with gains on rates both to Europe and North America, leaving it still ahead YoY by +0.4 percent. Outbound Shanghai fell -2.1 percent, leaving it at -6.1 percent YoY. Rates from Vietnam were lower both to Europe and to the U.S. as they were also from India and from Bangkok to Europe, the update added.
“Rates out of Europe were firmer again, particularly to North America – though less so to Asia. The index of outbound routes from London Heathrow continued its recent strong run with another gain of +6.8 percent WoW, taking its YoY increase up to +10.8 percent.
Outbound
Frankfurt was up by +1.6 percent WoW, cutting its decline over 12 months to -2.7 percent .”
From the Americas, the index of outbound routes from Chicago was up marginally WoW, helping take it into positive territory by +4.3 percent YoY. Overall rates from the U.S. were up again to Europe, though lower on routes to China and flat on lanes from Miami to South America, the update added.
