Global air freight rates are continuing to rise, according to the latest data from TAC Index, the leading price reporting agency (PRA) for air freight markets. The overall Baltic Air Freight Index calculated by TAC gained a further 4.1 percent in the week to March 18, the third successive weekly increase, reducing the decline over 12 months to 20.3 percent.
Rates are rising strongly again out of China with the index of outbound routes from Hong Kong up a further 5.2 percent WoW with gains on almost all major lanes cutting its YoY decline to only 7.9 percent, the update added. “With sources among forwarders suggesting renewed robust demand for Chinese exports, outbound Shanghai gained 8.9 percent WoW – strong gains both to Europe and the U.S. – further eroding the YoY decline to 7.6 percent. Meanwhile, after recent huge gains, rates out of India seem to be levelling off, and from Vietnam falling back a little.”
From Europe, the index of routes outbound Frankfurt also fell back a little after a large increase the previous week, down 4.1 percent WoW, mostly due to rates falling to North America, leaving the YoY change at -33.1 percent. Outbound London closed with a WoW gain of 10.6 percent with rates rising on all major lanes, helping to cut the YoY decline to 42.4 percent.
From the U.S, outbound Chicago saw a second successive weekly fall with a weekly decline of 7.7 percent, pushing its YoY decline to a hefty 48.5 percent. Overall rates from North America were declining WoW both to Europe and to China, though still rising to South America, the update added.