Air cargo rates up 12% in July, Bangladesh tonnages recover
Asia Pacific to the U.S. spot rates averaged around $5.80/kg; among key lanes driving up average prices in July
Average worldwide air cargo rates in July were up by +12 percent, year on year (YoY), driven by continuing strong demand from sectors such as e-commerce and persistent disruptions to supply chains in various parts of the world.
Average global rates rose by a further two percent in July compared with June, to US$2.50 a kilo, according to the latest figures from WorldACD Market Data. Based on a full-market average of spot rates and contract rates, rates are up +44 percent compared with the last pre-Covid equivalent period, July 2019. Worldwide rates have risen progressively from an average of around $2.30 in the first quarter to around $2.45 in the second quarter, edging up slightly further in July to $2.50 a kilo, the update added.
Asia Pacific to the U.S. was among the key lanes driving up overall average prices in July 2024 where spot rates averaged around $5.80 a kilo across the month, significantly higher compared with the already-elevated rates recorded in June. Compared with July 2023, spot rates from Asia Pacific to the U.S. were up by close to +70 percent.
Bangladesh disruptions
Despite continuing political and logistical disruptions taking place in Bangladesh, air cargo tonnages from Bangladesh bounced back in week 31, the update added. "For example, after plunging the previous two weeks (weeks 28-29), tonnages from Bangladesh to Europe recovered in week 31 to the levels seen in weeks 25-28. These tonnage levels in recent weeks are still well below the levels flown in the equivalent weeks last year, although those comparison months last year were particularly strong months for Bangladesh-Europe tonnages.
"But on the pricing side, spot rates from Bangladesh to Europe rose even higher in week 31 to their highest level this year, $4.87 a kilo, from the already extremely elevated levels seen throughout 2024, as the disruptions to air services and customs clearance services in the country added to an already-constrained capacity market. That figure of $4.87 a kilo is almost three times (+173 percent) the equivalent week last year."
