Rates rise to 2024 high despite tonnage dip
Tonnages from Asia Pacific origins fell in week 40 by 7% WoW, mainly due to Golden Week holidays in China.
Global air cargo spot rates rose to new 2024 highs in the first few days of October despite a dip in worldwide tonnages linked to national holidays in China and disruptions to air traffic in the Middle East caused by the increased tensions in the region.
Average worldwide spot rates edged by a further one percent WoW in week 40 (30 September 30-October 6) to $2.84 per kilo – their highest level this year, thanks to increases from Central & South America (+5 percent), Asia Pacific and Africa and origins, according to the latest update from WorldACD Market Data. "A two percent WoW increase in contract rates from Asia Pacific also helped drive a two percent WoW increase in the worldwide full-market average of spot and contract rates to $2.65 per kilo."
Tonnages from Asia Pacific origins fell in week 40 by seven percent WoW, mainly due to National Day or Golden Week holidays in China (which this year ran from October 1-6), the update added. Those tonnage drops from Asia Pacific origins explained the majority of the overall worldwide tonnages decline of five percent WoW, although there were also significant WoW tonnage declines from Middle East & South Asia (MESA, - nine percent), Europe (- four percent) and North America (-three percent).
"Further analysis, based on the more than 450,000 weekly transactions covered by WorldACD’s data, indicates that a -14 percent WoW fall in intra-Asia Pacific traffic was the biggest factor in the seven percent WoW drop in Asia Pacific origin tonnages, responsible for more than for two-thirds (68 percent, or - five percentage points) of that decline. And within that intra-Asia Pacific decline in traffic, intra-Asia tonnages ex-China were down by -21 percent WoW."
MESA analysis
Despite the drop in tonnages from MESA origins, air cargo volumes from that region remain up YoY by eight percent and rates by +54 percent with spot rates up by +78 percent. The region has been particularly impacted by disruptions to ocean freight capacity and supply chains caused by the attacks on container shipping in the Red Sea, with air cargo capacity within the region also affected last week by flight diversions and air space closures.
"A 13 percent drop in volumes from MESA to North America was the biggest factor within that nine percent WoW drop in chargeable weight from MESA origins."
