The recent bounce in air freight rates is continuing, according to the latest data from the TAC Index.

The price reporting agency (PRA) in air freight said overall Baltic Air Freight Index (BAI00) rose a further +4.1% in the week to October 2, now taking the change over the last four weeks up to +11.0% and cutting the 12-month drop to only -34.1%. 

The index for outbound Hong Kong (BAI30) routes, which has been underpinned for months by strong e-commerce activity, gained a further +1.9% week-on-week (WoW), taking its year-on-year (YoY) decline down to -32.3%.

Outbound Shanghai (BAI80) was again even stronger, rising another +5.3% WoW to cut its YoY fall to only -28.2%, with rates rising both in Europe and North America. 

Meanwhile, the TAC Index said outbound Frankfurt (BAI20) was again an exception to the firmer tone, with rates to Asia rising but the index dragged down by lower rates to North America — putting the overall change at -0.2% WoW and leaving the YoY fall at -42.6%.

Rates out of London (BAI40), by contrast, showed a further recovery from recent falls, with a gain of +4.6% WoW, though still a long way down YoY at -48.0%. 

Outbound Chicago (BAI50) rates showed a big gain WoW to cut the YoY decline on that index to only -30.7%, though reported activity was relatively light.

"That said, rates were also sharply up from the US to South America," the report said.

"And adding further weight to the impression of a genuine peak season bounce this year was also a big spike on rates from Vietnam — a market usually very reflective of spot market activity — with hefty increases WoW on rates both to Europe and the US," it added.