Global air freight prices have fallen back again according to the latest data from TAC Index.

The price reporting agency (PRA) on air freight said the overall Baltic Air Freight Index (BAI00) calculated by TAC declined 8.2% over the week to February 19, leaving it lower by 21.2% over 12 months. 

"Despite ongoing disruption to ocean shipping in the Red Sea and congestion leading to the suspension of business in certain locations such as Dubai and Bangkok, the overall decline last week was not surprising as air cargo volumes out of China fell sharply during the lunar New Year holidays," the report said.

It noted that after recent gains, the index of outbound routes from Hong Kong (BAI30) suddenly dropped 13.0% week-on-week (WoW) to put it back in negative territory over 12 months by 8.3%.

Outbound Shanghai (BAI80) also fell 11.5% WoW, with double-digit declines on many lanes leaving it at down 5.4% year-on-year (YoY).

Out of India, however, TAC Index said there were substantial double-digit gains on rates both to Europe and the US — indicating perhaps more shippers turning to air cargo to beat ocean transport problems. 

Other major markets were mixed.

The report said from Europe, the index of outbound routes from Frankfurt (BAI20) was also up sharply by 6.7% WoW boosted by higher rates both to China and to South East Asia, leaving that index at -39.7% YoY.

But the index for outbound London Heathrow (BAI40) fell a further 6.9%, with declines on all major lanes leaving it down 51.3% YoY. 

"From the US, the outbound index from Chicago (BAI50) edged up 2.4%, led by stronger rates to South East Asia, to leave that index down 31.3% YoY," TAC Index said.

"Overall, however, rates out of the US were mostly falling — with lower levels recorded both to Europe and to South America," it added.