Air freight prices were largely unchanged last week compared to the week prior, according to the latest TAC Index update on air cargo.

The global air freight data provider said expectations remain that rates will firm towards the peak season — although others anticipate the opposite should China's manufacturing starts to fully reopen amid the country's zero-Covid policy.

"After the slight uptick the previous week, air freight prices were largely unchanged last week according to the latest TAC Index data — with the Baltic Air Freight Index BAI00 off versus 0.8% week-on-week (WoW), taking the year-on-year change down to 8.0%. Prices did not move much from most major outbound locations with Shanghai showing the biggest WoW gain of 2.4%," TAC Index said.

It added that with inventories high and China still not reopening fully from Covid lockdowns, market watchers have been expecting demand to rise from alternative locations.

TAC Index noted, however, that prices from Vietnam to the US saw another WoW fall of v 6.3%, leaving the YoY change now down to v 24.6%.

India to the US rates, after a "big spurt" the previous week, were also off again by v 14.7% pushing the YoY change back into negative territory again at v 9.8%.

"Many observers still expect prices to firm as we head towards peak season for air cargo, while others suggest that if, and when China fully reopens, that could add a large amount of extra bellyhold capacity — which might have the opposite effect," the TAC Index August 24 weekly air cargo bulletin added.