Global air freight rates rally ahead of peak season

Global air freight rates were up again in the week to October 28 as the market headed into the traditional peak season period, according to the latest data from TAC Index.

The global Baltic Air Freight Index calculated by TAC was up +3.2 percent in the week under review to leave it ahead by six percent over 12 months with all major outbound indices rising WoW.

The rising market was again led by gains on the big export lanes out of China both to Europe and to the U.S., despite reports of more capacity shifting onto routes from Asia, particularly to Transpacific lanes, the update added. "The index of outbound routes from Hong Kong was up +2.9 percent WoW with gains to most major destinations leaving it at +7.7 percent YoY. Outbound Shanghai rose +3.7 percent WoW, pushing it to +16.2 percent YoY. There were also gains on rates out of Vietnam, Bangkok and Seoul while rates from India fell a little WoW both to Europe and to the U.S., though they remain a long way up YoY."

From Europe, the index of outbound routes from London zoomed eight percent WoW with gains on all major lanes, pushing the YoY change to +10 percent above last year. Outbound Frankfurt was up marginally and is still down at -16.4 percent YoY, reflecting a European economy that remains in the doldrums, the update added.

The index of outbound rates from Chicago edged up by +0.8 percent WoW, led by higher rates to Europe but is still in negative territory at -12.5 percent YoY. Overall rates from the U.S. were rising again to South America but flat overall on lanes to Europe and lower on lanes to China, the update added.

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