Airfreight rates rose again last week according to the latest data from TAC Index, the leading price reporting agency on airfreight markets – with higher spot rates starting to drag the index higher, sources suggested, as the run-up to the traditional peak season period started to gather steam. The global Baltic Air Freight Index (BAI00) calculated by TAC rose +1.8 percent in the week to 21 October, leaving it ahead by +4.4 percent over 12 months – though sources are still divided about how much higher it will go given how much capacity is already secured via block space agreements (BSAs).

The overall rise was led again by higher rates out of China both to Europe and to the US. The index of outbound routes from Hong Kong (BAI30) gained +1.6 percent WoW, putting it up +7.0 percent YoY. Outbound Shanghai (BAI80) rose +3.6 percent WoW with gains on most major lanes taking its gain to +12.6 percent YoY. There were also further gains on lanes from India both to Europe and to the US, though rates from Vietnam and from Bangkok – as well as from Seoul – were all slightly down WoW.

Rates out of Europe were also mixed, and falling overall on lanes to the US, China and Japan. However, the index of outbound routes from Frankfurt (BAI20) rebounded a little from recent falls with a gain of +3.5 percent WoW led by higher rates to North America, though still languishing at -14.2 percent YoY. Outbound London (BAI40) by contrast slipped -1.6 percent WoW after recent gains, though was still in positive territory YoY by +2.9 percent.

From North America, the index of outbound routes from Chicago (BAI50) was also lower by -4.2 percent WoW, dragged down by falling rates to South East Asia, to leave it at -12.6 percent YoY. However, overall rates from North America were rising again both to Europe and to China – and although lower to South America were also rising again on the big lanes from Miami to the south.