Rates rise further in last full week of October: WorldACD
China to USA spot rates of $5.13 per kg are 14% higher for Week 43 (Oct 21-27) year-on-year.
Average worldwide air cargo spot rates rose by a further five percent in the last full week of October, thanks to week-on-week (WoW) increases in spot prices from Asia Pacific (+ three percent), Europe (+seven percent) and Central & South America (+ eight percent), according to the latest weekly figures and analysis from WorldACD Market Data.
Global tonnages increased around four percent above last year’s levels, the update added.
Average global spot rates rose to $2.93 per kilo in week 43 (October 21-27), with the full-market average – based on a combination of spot and contract rates – rising two percent to $2.67 per kg. "Those increases take spot rates +22 percent above their equivalent levels this time last year with spot prices from Asia Pacific up +27 percent and those from Middle East & South Asia (MESA) origins up +78 percent."
October traffic up +7% YoY
Preliminary figures for October indicate that tonnages were up by around seven percent compared with last October, based on more than 450,000 weekly transactions covered by WorldACD’s data. "While that remains a significant YoY increase, it’s below the double-digit YoY percentage rises we’ve become accustomed to for much of this year. The comparison month, last October, was a relatively strong one as e-commerce volumes, in particular, surged towards the end of last year."
Although tonnages from Asia Pacific origins to Europe were up slightly (one percent, WoW) in week 43, chargeable weight flown from China to Europe actually declined by four percent WoW. That takes China to Europe tonnages down to the levels recorded in week 43 last year, and marks a significant contrast to the double-digit YoY percentage growth figures recorded for most of this year – although China to Europe volumes had already begun to surge this time last year, the update added.
On the transpacific market, Asia Pacific to USA tonnages recovered in week 43 to their levels prior to China’s Golden week, and is currently around 20 percent below their average levels in September and down by a similar amount (-19 percent) compared with the equivalent week last year. Spot rates from Asia Pacific to the USA averaging $6.14 per kilo in week 43 were up +39 percent compared with last year while China to USA spot rates of $5.13 per kg are +14 percent higher YoY.
