Air cargo rates hold firm: WorldACD

Worldwide tonnages fell by 3% in week 15 (April 8-14) with big WoW declines from Pakistan, Bangladesh and the UAE.

Air cargo rates hold firm: WorldACD
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Average global air cargo rates held steady in the second week of April, equaling their level in the equivalent week the previous year for the first time since mid-2022 despite a drop in tonnages partly linked to Eid.

Average global rates remained flat in week 15 (April 8-14) at $2.52 per kilo, following consecutive weekly WoW rises of between two-three percent in the previous six weeks, according to the latest weekly figures and analysis from WorldACD Market Data.

"Total worldwide tonnages fell by three percent in week 15 with particularly big WoW declines from Pakistan, Bangladesh and the UAE."

Eid effects on tonnages
Air export tonnages from South Asian countries including India, Pakistan and Bangladesh remain high compared with their normal levels for this time of year, especially to European destinations, linked to strong demand developments combined with supply issues caused by disruptions to ocean shipping. "A drop in bookings during the Eid holidays at the end of Ramadan led to some steep WoW falls in tonnages in week 15 ex-Pakistan (-41 percent), Bangladesh (-14 percent) and the UAE (-29 percent) to worldwide destinations along with other countries such as India (-18 percent worldwide, and -16 percent to Europe destinations)."

Tonnages from the Middle East & South Asia (MESA) region overall to Europe also dropped by 18 percent WoW, although they remain up by 17 percent compared with the same week last year.

Despite the WoW drop, India-Europe tonnages remain up nine percent YoY. Despite a 21 percent WoW drop, Dubai-Europe tonnages remained at more than twice their level this time last year, up 153 percent, in the week prior to flooding there, impacting the emirate’s air operations, the update added.

High MESA-Europe spot rates
MESA to Europe spot rates as a whole are more than double (+122 percent) their level this time last year with India-Europe spot rates still averaging more than $4 a kilo in week 15 ($4.05/kg) despite a two percent WoW drop, leaving them up by 174 percent compared with week 15 last year. Bangladesh-Europe spot rates edged up slightly further in week 15 to $4.61 a kilo (+176 percent YoY). Sri Lanka-Europe prices are up 53 percent YoY and Dubai-Europe spot prices are 33 percent above week 15 last year.

The rise in rates from Asia Pacific and MESA origin points comes despite a 2Wo2W decline in tonnages (eight percent and seven percent, respectively) from those two regions, and relatively stable available capacity (down three percent ex-Asia Pacific and down one percent ex-MESA), the update added.

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