Tonnages and rates begin dropping after strong Q4 peak

Average spot rates from Asia Pacific origins dropped by around 4% in week 50 (December 9-15) WoW to $4.57 per kilo.

Tonnages and rates begin dropping after strong Q4 peak
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Air cargo’s strong seasonal fourth quarter (Q4) appears to have peaked, with tonnages and rates dropping slightly in the second full week of December, including from Asia Pacific origins, according to the latest figures and analysis by WorldACD Market Data.

Average spot rates from Asia Pacific origins dropped by around four percent in week 50 (December 9-15) compared with the previous week to $4.57 per kilo. "That fall in prices was offset by a six percent rise from North America and a five percent increase from Middle East & South Asia (MESA) origins, together leading to a worldwide one percent WoW dip in spot rates."

Compared with last year, average global spot rates in week 50 this year were 16 percent higher at $3.20 per kilo, driven by a +60 percent year-on-year rise from MESA, a +14 percent increase from Asia Pacific and +13 percent rise from Europe, the update added.

Demand drops
With worldwide air cargo capacity stable as a one percent drop in worldwide freighter capacity was balanced out by a one percent increase in passenger belly capacity, the changes in spot prices broadly reflected variations in demand. "Overall worldwide tonnages fell by one percent WoW with a two percent drop in tonnages from Asia-Pacific origins and a seven percent fall from MESA origins."

Asia Pacific market moves
Asia Pacific to U.S. spot rates in week 50 are slightly (four percent) higher compared to last year although China to the U.S. rates are down seven percent YoY, the update added.

"From Asia Pacific to Europe, all the big origin markets recorded significant WoW drops in tonnages in week 50 including WoW falls (-10 percent) from Vietnam and (- nine percent) from Thailand."

YoY, spot prices from all major origin markets to Europe were significantly higher in week 50 including a +63 percent rise from Thailand and +40 percent increase from Taiwan, the update added.

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