Air cargo demand rebounds slightly from Lunar New Year dip
Worldwide rates, however, dropped 5% week on week to $2.30 per kilo.
Global air cargo tonnages rebounded slightly (+three percent) in week 6 (February 3-9) from their Lunar New Year (LNY) holiday dip the previous week, according to the latest weekly figures and analysis by WorldACD Market Data.
Worldwide rates, based on a full-market average of spot rates and contract rates, dropped week on week (WoW) by five percent to $2.30 per kilo, taking average prices three percent below their level this time last year, the update added. "The week 6 drop in pricing is driven primarily by a -11 percent WoW fall from Asia Pacific origins, based on the more than 500,000 interactions covered by WorldACD’s database. Average worldwide spot rates were down by three percent WoW to $2.55 per kilo with spot prices from Asia Pacific dropping eight percent to $3.56 per kilo."
Spot rates from Middle East & South Asia (MESA) to Europe averaging $2.48 in week 6 are well down on their elevated levels throughout the second half of last year, although they are still up +32 percent compared with week 6 last year, the update added.
China to US confusion
With LNY falling on January 29 this year, it was no surprise that tonnages from China to the U.S. dropped steeply in the surrounding days and weeks, falling -20 percent WoW in week 5 and a further -28 percent in week 6, taking tonnages -41 percent down YoY. "Hong Kong to U.S. tonnages also fell sharply, down -22 percent WoW in week 5 and -13 percent in week 6. It’s difficult to separate how much of that decline was simply linked to the annual holidays and factory closures in China in the weeks before and after LNY, and how much resulted from the Trump administration’s sudden decision to revoke access to Section 321 customs-free de minimis import processes for imports from China.
“The resulting huge customs processing backlogs led swiftly to the Presidential order being suspended until “adequate systems are in place to fully and expediently process and collect tariff revenue applicable”, but in the meantime dozens of e-commerce-loaded freighter flights had been cancelled."
Spot rates from China to the U.S. declined three percent in week 6 to $3.99 a kilo, taking them 19 percent lower YoY with Hong Kong to U.S. rates down 14 percent YoY, the update added.
