Global air freight rates are continuing to edge upward, according to the latest data from the TAC Index.

Genuine peak season bounce

The price reporting agency (PRA) for air freight said the overall Baltic Air  Freight Index (BAI00) rose +2.8% in the week to October 23, trimming its year-on-year decline to -33.7% and adding further evidence of a genuine peak season bounce ahead of the Thanksgiving and New Year holidays. 

TAC Index noted in its statement that the overall rise was again led by firmer prices out of China — with the index of outbound routes from Hong Kong (BAI30) gaining a further +2.7% WoW to trim its YoY decline to only -19.2%, with rates rising to Europe as well as to North America.

Outbound Shanghai (BAI80) was up even more strongly by +4.1% WoW to leave its YoY fall at -27.0%, mainly driven by rising rates to North America, with rates to Europe sliding. 

It added that air freight markets out of Europe continued to be more lacklustre, with outbound Frankfurt (BAI20) lower by -1.9% WoW to leave the YoY fall at -48.7% — but with rates to China rising, while rates to North America were falling.

Meanwhile, the report said outbound London Heathrow (BAI40) also slipped by a further -1.3% WoW, with rates to North America also falling to leave the YoY drop at a thumping -60.0%. 

From the US, outbound Chicago (BAI50) bounced again WoW, maintaining a volatile short-term pattern, to leave the YoY change at -45.7%, but rates from the US to China overall were rising strongly.

"The biggest rises on the week, however, were again out of Vietnam — with rates rising very sharply WoW on the strength of spot demand both to Europe and the US," the report added.