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.
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.