Overall air freight rates were little changed last month, with the global Baltic Air Freight Index (BAI00) edging up +1.8% over the four weeks to 30 September, leaving it ahead by +7.5% over the previous 12 months. The index of outbound routes from Hong Kong (BAI30) – still the world’s biggest airport for cargo volume – was up +0.3% over the month, leaving it ahead by +16.8% YoY. Meanwhile, outbound Shanghai (BAI80) was up +2.7% MoM to leave it ahead +20.4% YoY. From Europe, the index of outbound routes from Frankfurt (BAI20) was higher by +1.5% but still at -11.2% YoY. Meanwhile, outbound Lon ..read more

Air freight rates maintained a firm tone again through the month of August. The Baltic Air Freight Index (BAI00) gained another +5.6% over the four weeks to September 2, taking its rise over 12 months to +17.2%. Overall, rates have remained unusually strong throughout the summer – a season when they typically ease lower as higher passenger traffic adds extra bellyhold capacity. Market participants point to two factors in particular driving this year’s stronger price pattern: disruption to ocean traffic in the Red Sea – which has led to big delays and price hikes in ocean shipping; and the cont ..read more

Global air freight rates maintained a firm tone again throughout the month of June according the latest data from TAC Index, the leading price reporting agency (PRA) for air freight. The overall Baltic Air Freight Index (BAI00) calculated by TAC ended the four weeks to 1 July down only a tad by -1.2%, leaving it ahead +10.4% over 12 months. The latest data confirms the market has remained surprisingly strong through what is normally a low season in the year – as extra bellyhold capacity comes on stream when passenger traffic increases in the summer. Sources said the relative strength of the ma ..read more

After a series of six successive weekly gains starting in February and running through March, it was a quieter spell for global air freight markets during April. The overall Baltic Air Freight Index (BAI00) calculated by TAC Data was exactly flat at +0.0% over the four weeks to 29 April, leaving it modestly lower by -7.7% over 12 months. After a further rise in the first week of May, however, the YoY comparison was getting close to flat overall at only -2.2%. There were also as usual some significant regional variations. Rates out of China continued to edge up, driven by the e-commerce sector ..read more

It was a strong month for global air freight markets in March. The overall Baltic Air Freight Index (BAI00), calculated by TAC Data, notched up five successive weekly gains, ending the month up +12.2% over the four weeks to 1 April, and cutting its year-on-year decline to only -16.5%. Sources cited various reasons for this renewed strength in the market – from the continuing rise of e-commerce to upcoming product launches, plus ongoing disruption to ocean shipping in the Red Sea and elsewhere. E-commerce was certainly a big theme at last month’s IATA World Cargo Symposium, which attracted reco ..read more

February was a strange month in air cargo markets, with a range of conflicting factors driving market rates wildly up and down at different points over the period. Among the key factors were notably the continuing disruption to ocean shipping traffic in the Red Sea – and the big surge in shipping rates that had sparked late last year. There were also instances of congestion leading to the suspension of air cargo business for short periods in certain locations, notably in Dubai and then in Bangkok – though these did not seem to be related directly to events in the Red Sea. Plus the usual rush o ..read more

TAC Index launches air freight rate data from Europe to the United States (US). You can now track outbound and inbound air cargo costs between Europe and the US with TAC Index data. This new route complements existing air cargo price coverage from Frankfurt (Germany), London (United Kingdom) and Milan (Italy) to the United States. The United States is the largest trading partner with Europe. In 2022, the EU exported 509 billion Euros in goods, and imported 359 billion Euros (source: Eurostat). This makes the US the largest export market, and second-largest import market, for Europe. Since ..read more

Going forward, it looks like the main drivers of volatility over next 12 months will be factors like the US elections; global freight issues related to both Red Sea and Panama Canal; the Middle East and Black Sea conflicts; plus likely US and EU interest rate adjustments.  January, however, was dominated by speculation about an immediate surge in air cargo rates that – contrary to predictions – took some time to start arriving. Expectations of rising rates were driven mostly by the attacks on commercial shipping in the Red Sea by the Houthis of Yemen. That led to large-scale diversion of ..read more

Air freight rates from Viet Nam to Europe are on the rise. The combination of demand from the ocean freight disruptions and Lunar New Year is finally driving up prices. TAC Index data shows that, although air freight volumes increased in the two weeks to the 22nd January, the average achieved price per kg from Viet Nam to Europe decreased (-20%). This trend has reversed with rates to Europe increasing 15.9% WoW to the 29th January. With the current ocean freight disruptions air cargo demand increased earlier this year relative to Lunar New Year. Air cargo volumes increased by 79% in the week t ..read more

Data released by TAC Index on Monday 15th January showed that air cargo prices from North Asia to Europe had increased, but we have yet to see a ‘surge’ in rates from the current ocean freight disruptions.  Higher air freight rates from North Asia to Europe compared to the US, relative to pre-peak levels (average rate in July 2023), supported by the underlying price distribution dynamics, suggest higher and increasing air cargo demand, especially out of China. This is likely in reaction to the ocean freight disruptions combined with the upcoming Lunar New Year holidays when demand and rat ..read more