Worldwide average air cargo spot rates rose to a new 2024 high in the first full week of September, boosted by a surge in tonnages and spot rates from Asia Pacific origins, particularly to North America and Europe, according to the latest figures and analysis from WorldACD Market Data.
Average global spot rates increased by +6% to US$2.85 per kilo in week 36 (2-8 September), compared with the previous week, +30% higher than the equivalent week last year, thanks to week-on-week (WoW) increases of +6% from Asia-Pacific origins and +7% from Middle East & South Asia (MESA) origins, taking spot rates from those regions +41% and +101% higher, year on year (YoY). Average worldwide contract rates also edged up by a further +3% to $2.48 a kilo, generating a $2.59 per kilo full-market average of spot rates and contract rates – a WoW +3% rise and a YoY increase of +16%. That’s an increase of +51% compared with the last pre-Covid equivalent period, September 2019.
Combining the figures for weeks 35 and 36, worldwide tonnages and average rates both rose by +2% compared with the previous two weeks (2Wo2W), thanks largely to a +6% rise in tonnages from Asia Pacific origins and a +2% rise in rates from that region. Globally, capacity fell by -2%, on a 2Wo2W basis, largely due a -5% reduction from North America origins.
Among the biggest changes was a +11% 2Wo2W increase in intra-Asia Pacific tonnages, as volumes continued to rebound from the effects of various typhoons in recent weeks. Tonnage increases, 2Wo2W, from Asia Pacific origins to Europe (+6%) and to North America (+4%) helped take overall global chargeable weight +9% above its equivalent level last year, with average rates up +15%, YoY.
China-Europe spot rates soar
Among the biggest price increases in week 36 was a +18% WoW jump in spot rates from China to Europe, to US$ 4.39 per kilo – one of the highest levels this year, and +46% above their level this time last year, based on the more than 450,000 weekly transactions covered by WorldACD’s data. That accompanied a +4% WoW rise in China to Europe tonnages. Meanwhile, spot rates from Thailand to Europe surged by a further +14%, WoW, to $3.73 per kilo – a rise of more than one-third (+34%) in just three weeks – taking Thailand to Europe spot rates to almost double (+86%) their level this time last year.
Average spot rates from Asia Pacific to the USA crept up by a further +3%, WoW, to $6.16 per kilo – the highest level for several months, and a YoY increase of +64% – while chargeable weight flown remained stable, WoW. There are no clear signs of any overall drop in tonnages from Asia Pacific to the USA resulting from new security changes introduced in the USA last month. But tonnages from China to the USA, and particularly to LAX airport, have been significantly down, YoY, in the last eight weeks, most likely due to tighter customs checks of Chinese origin cargo at LAX since the start of the summer.
From MESA, tonnages have been somewhat volatile in the last few weeks – including a -21% WoW drop from Dubai to Europe and a +21% WoW increase from Colombo to Europe in week 36. But spot rates from MESA origins to Europe remain exceptionally high and rose by a further +7% in week 36 to an average of $3.42 per kilo – more than double (+116%) their level last year – thanks to further increases from Dubai (+8%, WoW) and Bangladesh (+5%, WoW), to $2.30 and $5.33 per kilo, respectively.
