Global air cargo rates continue to rise by TAC Index

28 April 2024

Global air cargo rates continue to rise by TAC Index

According to the latest figures from TAC Index, a prominent price reporting agency (PRA) for air freight markets, global air freight rates are on an upward trajectory. The overall Baltic Air Freight Index, calculated by TAC, surged by an additional 4.1 percent in the week ending March 18. This marks the third consecutive weekly rise, contributing to a reduction in the decline observed over the past 12 months to 20.3 percent.

Rates from China are seeing a notable surge once more, as indicated by the index of outbound routes from Hong Kong, which climbed an additional 5.2 percent week over week (WoW). This increase was observed across almost all major lanes, significantly reducing its year-over-year (YoY) decline to just 7.9 percent. The update highlighted that with forwarders reporting renewed strong demand for Chinese exports, outbound Shanghai experienced a substantial 8.9 percent WoW increase, particularly notable in routes to Europe and the U.S., further narrowing the YoY decline to 7.6 percent. However, rates out of India appear to be stabilizing after recent significant increases, while those from Vietnam are experiencing a slight decrease.

In Europe, the outbound routes index from Frankfurt experienced a slight decline of 4.1 percent week over week (WoW) after a notable increase the previous week. This decline was primarily attributed to rates dropping to North America, resulting in a year-over-year (YoY) change of -33.1 percent. Conversely, outbound London saw a significant WoW gain of 10.6 percent, with rates increasing across all major lanes, leading to a reduction in the YoY decline to 42.4 percent. Meanwhile, outbound Chicago from the U.S. witnessed a second consecutive weekly decrease, with a 7.7 percent decline, contributing to a substantial YoY decline of 48.5 percent. The update noted an overall WoW decline in rates from North America to both Europe and China, although rates to South America were still on the rise.