Bangladesh disruptions stall tonnages in late July

Worldwide air cargo tonnages remained flat in the last full week of July, having dropped around two percent the previous week, taking them to around five percent below their level at the end of June, according to the latest weekly figures from WorldACD Market Data.

"There is no clear evidence that the relatively subdued tonnages in the last two full weeks are linked to the IT outages in many countries on July 19. However, tonnages flown from Bangladesh have been down significantly since mid-July due to disruptions caused by political protests that led to blackouts of internet services for several days," says the update.

Tonnages flown from Bangladesh to Europe declined by -29 percent in week 29 compared with the previous week. "Although volumes bounced back slightly in week 30, regaining six percent WoW, both weeks are down by around 50 percent YoY from a market that has generally seen some substantial YoY growth in 2024."

Regional data for week 30 (July 22-28) indicates that tonnages fell from four of the six main world regions on a WoW basis. Tonnages, however, rose from Europe (up two percent) and Middle East & South Asia (MESA, up one percent), making overall worldwide tonnages stable compared with the previous week, based on the more than 450,000 weekly transactions covered by WorldACD’s data.

"Combining the figures for weeks 29 and 30 gives a seven percent YoY increase, suggesting a possible slowdown in YoY growth in the latter part of July. Preliminary estimates for the full month of July indicate that tonnages were up, YoY, by between nine-10 percent."

Rates remain relatively firm
Based on a full-market average of spot rates and contract rates, global rates slipped slightly (one percent) in week 30 but were stable on a two-week basis, the update added.

"Compared with last year, rates of $2.52 per kilo are up by +13 percent, thanks to YoY increases of +55 percent from MESA and +24 percent from Asia Pacific," the update added.

Average spot market rates from Asia Pacific origins to the USA dropped back slightly (down three percent) in week 30 but spot rates remain very significantly up, YoY (+62 percent).

"Rates from Singapore to the USA have reached some extremely high levels in the last five weeks, rising above $9 per kilo for three of the last four weeks and standing at $9.25 per kilo in week 30 – more than double their equivalent level this time last year."

With disruptions continuing to container shipping in the Red Sea, average spot prices from MESA origins to Europe also remain more than double their equivalent levels this time last year, holding firm at $3.30 per kilo (+135 percent, YoY).