TAC Index reported that air freight prices continue to trend lower — a period which would otherwise have shown a firming up of rates ahead of the peak season.

The global air freight data provider said the overall Baltic Airfreight Index fell another v 2.8% in the latest week, leaving the year-on-year (YoY) change now down v 21.6%.

"Normally, at this time of the year, prices firm up as the industry approaches peak season. But with high inventories and a murky global macro outlook, demand remains muted and prices from key outbound destinations are continuing to fall," it added.

The report said Shanghai, for example, which had another week-on-week (WoW) drop of v 5.1%, taking it to a YoY fall of v 35.7%, with no sign of yet of a long-anticipated uptick following local lockdowns earlier this year.

"With China supply chains disrupted, some expected rates on routes from alternative locations such as Vietnam and India to the US to rise," TAC Index added, although noting that rates are also falling based on the latest TAC data.

It said Vietnam to US routes dropped another v 7.2% WoW to take the YoY decline to v 52.8%.

Meanwhile, India to US routes dropped another v 4.0% WoW taking the YoY decline to v 36.5%, TAC Index said.