Global air freight prices are continuing on a downward trend, according to the latest data from TAC Index.

The price reporting agency (PRA) for air freight noted that the overall Baltic Air Freight Index BAI00 slipped a further -3.9% in the week to 15 May, leaving it at -48.9% over 12 months. 

 
It said that rates were lower again last week out of most major outbound locations, with Shanghai BAI80 down -2.9% WoW to leave it at -51.0% YoY and Hong Kong BAI30 down -2.4% WoW to put it at -46.8% YoY.

"Some sources [are] blaming a 'glut' of new capacity coming on stream both from new freighters and in the bellyhold of passenger planes now that fuller services are being reinstated post-Covid," the TAC Index report said.

It added that Chicago BAI50 was one exception with a slight gain of +0.7% WoW, trimming its YoY decline to -42.2% with prices firmer on routes both to Europe and South East Asia.

But out of Europe rates were falling steeply, with Frankfurt BAI20 -8.1% lower WoW to take its YoY fall to -52.9% and London BAI40 -9.8% down WoW to take its YoY decline to -52.5%. 

TAC Index noted that Vietnam was slightly firmer again but India slightly weaker — with both still a long way lower YoY.