Rates remain high amid recovering air cargo capacity
Worldwide average air cargo rates have remained firm in the last two weeks and remain almost 20% higher than this time last year, amid the gradual recovery of global air cargo capacity, the latest figures from WorldACD Market Data reveal.
In week 26 (June 27 - July 3), worldwide chargeable weight decreased by -2% compared with the week before, and the average worldwide rate decreased slightly, based on the more than 350,000 weekly transactions covered by our data and analysis of the world’s main air cargo lanes.
Comparing the last two weeks with the preceding two weeks (2Wo2W), average worldwide rates increased by +1% and chargeable weight dropped by -1%, while there was an increase in overall capacity of +1% compared with the preceding two weeks.
Rates from North America to Europe and from Europe to Africa went up particularly strongly in the last two weeks (+5%).
Compared with last year, the last two weeks showed a worldwide rate increase of +19% and a weight decline of -8%, at a capacity increase of +11%.
Other highlights
On the demand side, the biggest two-week shift was a +9% increase in chargeable weight from Middle East & South Asia to Asia Pacific. But Middle East & South Asian outbound average rates recorded the biggest decline of any major region at -4% in the last two weeks compared with the previous two.
For the other major origin regions, average 2Wo2W rates rose or fell between 1% or 2%, with Africa and North America seeing rate rises of +2%, Asia Pacific +1%, while average rates from Europe and Central & South America slipped -1% each.
Although average rates on a worldwide basis remain broadly stable, up +1% in the last two weeks compared with the previous two, they remain nearly +20% higher than this time last year, despite a +11% recovery in capacity. Average yields from North America are up by +25%, year on year, despite a -9% drop in chargeable weight and a +18% capacity increase. Similarly, prices from Europe are +12% higher despite a -4% drop in demand and a +21% rise in capacity.
And for the one major region that has seen significant declines in capacity this year, average rates from Asia Pacific last week were up +28%, year on year, despite a -12% decline in chargeable weight, whereas capacity was around -10% below its level this time last year.
