Global air cargo rates are holding firm due to strong demand and high spot rates in the Asia and Middle East markets, according to the latest weekly figures and analysis from WorldACD Market Data.
Despite total worldwide tonnages in week 24 of 2024 declining 2 percent, average rates remained stable at $2.51/kg, an 8 percent annual increase and a 42 percent increase above pre-pandemic levels. Combining the data of both weeks 23 and 24, the WorldACD Market Data reveals a 1 percent increase in both rates and tonnages compared with the previous two weeks.
MESA region drives growth
Year-on-year, tonnages saw an 11 percent increase while global air cargo rates saw an 8 percent hike. WorldACD attributes this growth to significantly higher demand from all the main worldwide origin regions. However, the Middle East & South Asia (MESA) witnessed the strongest growth with a 52 percent increase in rates and a 13 percent increase in tonnages.
The Asia Pacific region also saw significant growth with rates rising 17 percent and tonnages recording a 16 percent raise.
In addition to the rise in global air cargo rates, the data notes significant increases in average spot prices in the last five weeks to the USA from the Asia Pacific region as a whole. In week 19, spot prices reached $4.80 and rose 11 percent to $5.34 in week 24. Meanwhile, in China, spot rates saw a 7 percent increase to $5.25 during the same period. This five-week increase raised prices in the two regions by 52 percent and 38 percent annually, respectively.
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Asia-U.S. markets mixed
The report reveals mixed performance in air cargo between different regions in Asia to the U.S. WorldACD reports a decline in China tonnages to LAX airport in the last month compared to the China-USA market as a whole and compared to the wider Asia Pacific to the U.S.
Despite the decline in China-USA tonnages, China-USA and Asia Pacific-USA spot rates have continued to rise by 38 percent and 30 percent above their levels this time last year, respectively.
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