Bangladesh and Japan rates soar as disruptions persist: WorldACD

Soaring air cargo spot rates from Bangladesh and Japan and a surge in tonnages from Dubai have further boosted an already buoyant air cargo market in the first half of September, according to the latest weekly figures and analysis from WorldACD Market Data.

Worldwide air cargo tonnages flown increased by four percent in week 37 (September 9-15), week on week, driven by a five percent increase from Asia Pacific origins, a six percent increase from Central & South America (CSA), and a rebound of 10 percent from North America origins, the update added.

Average worldwide rates edged up to $2.58 per kilo, based on a full-market average of spot rates and contract rates with a one percent increase from Asia Pacific origins, partially cancelled out by a two percent drop from Middle East & South Asia (MESA) origins. "Average worldwide rates from those two regions are up year on year (YoY) by +24 percent and +53 percent, respectively, helping drive average worldwide prices +14 percent higher, and more than +50 percent above pre-Covid levels (September 2019). That overall worldwide increase comes despite YoY falls in average rates from North America, Europe, CSA and Africa."

Spot rates climb from Bangladesh, Japan
Although average spot rates from India to Europe have fallen back to around $3.30 per kilo in recent months from their highs of more than $4 in April, spot rates from Bangladesh to Europe continue to rise, exceeding $5 per kilo for the last three weeks as political unrest and logistics disruptions continue to affect this key textile export nation, the update added. "But the effects on spot rates from Bangladesh to the USA are even more pronounced with rates soaring above $7 a kilo for the last four weeks. At $7.49 per kilo in week 37, Bangladesh to USA spot rates are more than three times their levels this time last year (+219 percent)."

From Japan, where air services have been disrupted in recent weeks by typhoons, spot rates to the USA soared above $8 per kilo ($8.33) in week 37, their highest level this year. That’s an increase of around +50 percent compared with their average levels three months ago, the update added.