After a mild bounce the previous week, air freight rates have drifted lower again, according to the latest data from TAC Index.

The global price reporting agency (PRA) for air freight reported that the overall Baltic Air Freight Index (BAI00) slipped -2.8% in the week to July 24, leaving it lower by -48.1% over the past 12 months.

"Despite this renewed decline, market sources said they were now expecting rates to firm up ahead of some major product launches in September, raising the prospect of some form of peak season in 2023 — which failed to occur at all last year," TAC Index said.

In its report, the PRA noted that rates were lower last week from most major outbound locations, though continuing to hold up quite well out of Hong Kong (BAI30), which was down only -1.2% week-on-week (WoW) to leave its decline at -44.5% year-on-year (YoY), with prices on lanes to Europe edging up. By contrast, Shanghai (BAI80) was lower -4.0% WoW.

This reverses most of the previous week's gain — leaving the YoY change at -49.6%, with rates lower both in Europe and North America. 

"The main exception to the downward trend was out of Frankfurt (BAI20), which was up +2.0% WoW — taking its change to -51.2% YoY — boosted by higher rates to North America, South East Asia and China. Rates from London (BAI40) were lower -2.9% WoW leaving the YoY change at -52.6%," TAC Index said.

Out of North America, rates from Chicago (BAI50) fell back after recent gains, leaving the YoY change at -47.9%, while rates from Miami and other locations in South America also edged a little lower.

The PRA said out of other locations, rates from both India and Vietnam were higher in Europe but lower in North America.