Air cargo rates, tonnages decline on July demand lull

Worldwide air cargo rates and demand softened slightly from most regions in the second week of July, although tonnages and average global prices remain significantly higher than this time last year, thanks to continuing elevated demand and high rates from Asia and the Middle East.

There was a one percent drop in worldwide tonnages in week 28 (July 8-14), mainly due to falls from Europe (-5 percent), Asia Pacific (-2 percent) and Africa (-5 percent), according to the latest weekly figures and analysis from WorldACD Market Data. "A post-Independence Day rebound from North America (+6 percent) and from Central & South America (+4 percent) helped keep total worldwide tonnages relatively firm during what is normally a quiet month."

Average worldwide rates edged down marginally to $2.50 per kilo in week 28 with small declines from Asia Pacific, Middle East & South Asia and Europe origins. "However, that figure of $2.50 per kilo is up 11 percent year on year based on a full-market average of spot rates and contract rates, and remains significantly higher than the equivalent period prior to Covid (+44 percent compared to July 2019)."

Average spot prices eased off in week 28 from some East Asia origin markets to Europe, dropping 16 percent from Thailand and 11 percent from Taiwan to $2.65 and $3.65 per kilo, respectively. Average spot rates from China to Europe slipped slightly for the third consecutive week. There were further increases from Hong Kong (+7 percent), South Korea (+5 five percent) and Japan (+3 percent) to Europe despite an eight percent fall in tonnage from Hong Kong WoW.