Baltic Exchange, in partnership with TAC Innovation, is expanding its air freight spot indices to include three new routes originating out of Shanghai.
Pricing is now available for routes to Central Europe, the US West Coast and the US Mid-West.
They complement current routes originating from Hong Kong, India and Korea. Plans are also underway to launch more routes, with origins ranging from Hanoi and Frankfurt, as well as North and South America within the next 12 months.
The Exchange says there is increasing market demand for more origins in key Asian export hubs, with air freight rate volatility increasing amid geopolitical disruption in the Middle East, heightened jet fuel costs, reduced belly-hold capacity and increased demand for time-sensitive goods.
They will also capture the growing trade in high-value electronics and semiconductors, as well as pharmaceuticals and e-commerce goods, from China to the US.
The indices are used to assess rate movements and benchmark contract negotiations, as well as forming the basis for hedging discussions and strategies.
Baltic Exchange chief executive, Mark Jackson (pictured), said, “Baltic Exchange and TAC Innovation continue to closely collaborate to build a transparent and data-driven framework for the global air cargo market during a time of global volatility in air freight rates.”
Founder and managing director of TAC Innovation, John Peyton Burnett, added, “The extension to include routes out of Shanghai will provide much-needed transparency to an air cargo market that is increasingly relies on data for developing routes out of key markets. The new BAI Spot routes ensure that market participants can navigate the current volatility with greater confidence and use these solutions to solve critical pain points.
