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Sunday, December 5, 2021

Maritime Logistics Professional

November 16, 2020

INTERMODAL: Baltic Exchange launches Air Freight Indices

© M. Zech Fotografie/AdobeStock

© M. Zech Fotografie/AdobeStock

The Baltic Exchange has today (16 November) launched weekly air freight indices. It has partnered with established Hong Kong based air cargo pricing publisher TAC Index and the new indices include six outbound indices and 13 individual destination baskets. These products will be branded as the Baltic Air Freight Index (BAI) - powered by TAC data. They will come under the governance of Baltic Exchange Information Services Limited (BEISL), with TAC Index acting as the Calculating Agent.

  • Did You Know? The global air freight market is estimated to be worth $100 billion, with 65 million tonnes of general cargo moved by air annually. It is estimated that less than one percent of world trade by tonnage is carried by air, but because of the high value of these goods, they represent about 35 percent of the value of goods shipped globally.

Priced in US$/kg, the indices reflect transacted rates from key hubs: London, Frankfurt, Hong Kong, Chicago, Shanghai and Singapore to the main import regions globally.  

Rates are provided to the Calculating Agent by leading international freight forwarders and published each Monday by the Baltic Exchange. The indices are available on www.balticexchange.com to subscribers to the BAI data – however, a headline BAI index is available to any current subscriber to the Baltic Exchange indices. A separate Air Freight Guide will be published.

The Baltic Exchange already provides benchmark assessments for the maritime markets which are used to settle billions of dollars-worth of derivatives and physical trades every year. The move follows a rigorous review of the TAC Index’s methodology to ensure that it is compliant with the principles set out by the International Organization of Securities Commissions (IOSCO).

Originally launched in 2016, the TAC Index is widely referenced in the air cargo market and has established itself as a trusted and independent source for market freight rates.

  • Headline Index
    BAI powered by TAC data (Baltic Air Freight Index)

  • Outbound Indices
    BAI-FRA00 Frankfurt Outbound Index
    BAI-HKG00 Hong Kong Outbound Index
    BAI-LHR00 Heathrow Outbound Index
    BAI-ORD00 O’Hare Int’l, Chicago Outbound Index
    BAI-PVG00 Shanghai Pudong Outboard Index
    BAI-SIN00 Singapore Outbound Index

  • Destination Baskets
    BAI-FRA02 Frankfurt to North America
    BAI-FRA03 Frankfurt to South East Asia
    BAI-FRA04 Frankfurt to USA
    BAI-FRA05 Frankfurt to China
    BAI-HKG01 Hong Kong to Europe
    BAI-HKG02 Hong Kong to North America
    BAI-HKG03 Hong Kong to South East Asia
    BAI-HKG04 Hong Kong to USA
    BAI-LHR02 London Heathrow to North America
    BAI-LHR03 London Heathrow to South East Asia
    BAI-LHR04 London Heathrow to USA
    BAI-ORD01 O'Hare Int'l, Chicago to Europe
    BAI-ORD03 O'Hare Int'l, Chicago to South East Asia
    BAI-PVG01 Shanghai Pudong to Europe
    BAI-PVG02 Shanghai Pudong to North America
    BAI-PVG04 Shanghai Pudong to USA
    BAI-SIN03 Singapore to South East Asia