Global air freight rates are continuing to rise, according to the latest data from the TAC Index.

The price reporting agency (PRA) on air freight said the overall Baltic Air Freight Index (BAI00), calculated by TAC, was up a further +4.6% in the week to December 11, cutting its year-on-year fall to only -10.0% — though some market sources now expect this strong peak season rise to start tapering off as the year comes to an end. 

"The overall trend continues to be led by higher rates out of China, driven largely by e-commerce business," TAC Index said.

The index of outbound rates from Hong Kong (BAI30) gained a further +7.1% week-on-week (WoW), putting its year-on-year (YoY) change firmly in positive territory at +12.8%, with a spike in rates at the higher quintiles in the range of rates achieved indicating a surge in spot rates.

It added that the outbound Shanghai (BAI80) index gained another +4.2% WoW, with gains on most major lanes putting it too well ahead YoY by +18.5%. 

Meanwhile, the report said rates out of Europe, by contrast, continue to languish a long way below last year's levels, with general cargo demand — aside from e-commerce — remaining soft.

Outbound Frankfurt (BAI20) gained +1.8% WoW but remained at -48.4% YoY, with rates still sliding on some lanes to China and the US. Outbound London (BAI40) gained a more chunky +4.3% WoW, with gains on all major lanes, but still shows a colossal drop of -60.4% YoY. 

Outbound Chicago (BAI50) slipped a little by -1.4% WoW to stand at -31.3% YoY, though overall Transatlantic rates between the US and Europe were rising a little in both directions.

"Elsewhere, it was a quieter week after some huge recent gains on rates out of Vietnam, though rates from India were still rising," the TAC Index report said.