The disruption to ocean traffic in the Red Sea has yet to have any dramatic effect on air cargo rates, according to the latest data from the TAC Index.

The price reporting agency (PRA) for air freight said after falling sharply over the Christmas to New Year period as peak season came to an end, the overall Baltic Air Freight Index (BAI00) shed a further 6.6% in the week to 8 January, putting it lower by 31.8% over 12 months. 

"Having plummeted over the holiday period, rates out of China fell further in the first week of the year, with the index of outbound rates from Hong Kong (BAI30) losing a further 5.9% WoW to leave it lower by 15.5% YoY," the report said.

It added that outbound Shanghai (BAI80) fell even more by 7.3% WoW to leave it down 27.9% YoY — though rates to Europe were edging up amid signs of some shippers switching to combined Sea-Air transport options, using sea lanes from Asia to the Middle East and then on by air to Europe to meet delivery deadlines.

"Some sources expect to see more of that in the coming weeks as many factories have only just started to spool up again since New Year."

TAC Index noted that index levels were lower from all major outbound locations, though less so again from Europe — with outbound Heathrow (BAI40) only off by 1.1% WoW, boosted by higher rates to South East Asia, though still down 50.6% YoY.

Outbound Frankfurt (BAI20) fell 4.9% WoW, though it was also seeing higher rates to South East Asia, leaving that index down 44.8% YoY. 

The report said rates were falling "more steeply" on many lanes out of the US, with outbound Chicago (BAI50) falling 12.7% WoW to leave it at 54.0% YoY.

Meanwhile, the TAC Index noted that rates from the US were falling both to Europe and China but rising again to South America, including a gain of +5.6% WoW from Miami.

"Rates were mainly falling WoW on most other lanes — exceptions including Vietnam to the US, and Milan to the US, which were both up WoW," the report said.