Baltic Exchange and TAC Index launch Baltic Air Freight Spot Indices in response to volatile air cargo market

Baltic Exchange has expanded its benchmarking data in the air freight sector with the launch of the Baltic Air Freight Spot Indices, developed in partnership with leading air cargo pricing specialists TAC Index.

The new daily BAI Spot Indices, set to enter a public trial phase on 1 July 2025, provide a timely and accurate reflection of spot market movements in the air cargo market, which have become more pronounced in recent years as demand for cargo continues to grow.

This development follows the private trial, which began in October 2024, has seen strong market engagement with airlines, freight forwarders, and financial institutions, as well as numerous large corporates with substantial air cargo spends.

Baltic Exchange and TAC Index have worked together to enhance the existing suite of Baltic Air Freight Indices with the introduction of these new spot assessments. Derived using Baltic Exchange’s FCA-regulated methodology, first established over 40 years ago with the Baltic Dry Index (BDI), these new indices are designed to support the development of physical air cargo contracts and derivatives trading.

A panel of expert market participants has been assembled to contribute high-quality data for three major export routes originating out of Hong Kong — to Central Europe, the US East Coast and the US West Coast. These routes were chosen due to Hong Kong’s position as a key gateway for e-commerce exports from Southern China, historically one of air cargo’s largest export regions.

"We’re delighted to move forward with the public trial of the BAI Spot Indices. These new assessments are a direct response to the industry’s need for trusted risk management tools in a fast-evolving market. The credibility of our methodology, supported by a growing and engaged contributor base, ensures that these indices will serve as a solid foundation for both physical and financial market applications," said Mark Jackson, CEO of Baltic Exchange.

"This collaboration with Baltic Exchange is a natural extension of our shared commitment to transparency and innovation in the air freight market. By combining our domain expertise with Baltic Exchange’s proven methodology, the BAI Spot Indices are ideally suited for today’s dynamic logistics landscape," said John Peyton Burnett, Founder and Managing Director of TAC Index.

Looking ahead, Baltic Exchange aims to further expand the BAI Spot suite in response to growing market demand, including the potential addition of new routes and integration into broader trading platforms.