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Air cargo Asia Pacific demand and rates soar: WorldACD

DUBAI, June 14, 2024

Air cargo demand and rates from Asia Pacific origins continue to soar well above last year’s levels, with spot rates from Vietnam to Europe, in particular, spiking even further in the last two weeks. 
According to the latest weekly figures and analysis from WorldACD Market Data, based on the more than 450,000 weekly transactions covered by WorldACD’s data, overall tonnages and rates from Asia Pacific origins are up, year on year (YoY) by +20% and +16%, respectively, in the last two full weeks (weeks 22 and 23), based on a full-market average of spot rates and contract rates. 
But looking at spot rates on their own, highlights some big variations in the last few weeks between the various main Asia Pacific origin countries, especially to Europe, as shippers face significant shortages of both air and ocean freight capacity due to strong demand and disrupted sea freight services. 
Port congestion
Those disruptions to container shipping services, in part caused by the attacks on vessels in the Red Sea, have been exacerbated further in recent weeks due to port congestion and vessel capacity shortages in certain key markets, driving more cargo owners to air cargo solutions.
For several weeks, air cargo spot rates from Vietnam to Europe have been more than double their equivalent level this time last year, averaging US$4.19 per kilo in the last seven weeks. Analysis this week by WorldACD indicates they have risen for the last six consecutive weeks to $4.47 per kilo in week 23 (3 to 9 June), up by +143%, YoY (with tonnages up +28%, YoY). But spot rates to Europe are up significantly, YoY, from most of the main Asia Pacific origin markets in week 23, including by +32% from China and +18% from Hong Kong, by far the region’s largest origin markets. But some of the region’s other smaller markets have also seen bigger%age rises in spot rates in week 23, including Malaysia (+83%), Indonesia (+46%), and Thailand (+43%), YoY. 
Meanwhile, demand and rates on the transpacific market are also highly elevated compared with last year, with average spot rates to the USA from Asia Pacific and China origins standing at $5.23 (+51%, YoY) and $5.30 per kilo (+38%, YoY), respectively, in week 23.
Middle East & South Asia boom continues
Elsewhere, demand and rates from Middle East & South Asia (MESA) origins have continued to surge – especially to Europe, with spot rates from MESA origins to Europe averaging more than twice their equivalent level last year for the last 10 consecutive weeks, driven in particular by highly elevated spot prices from India and Bangladesh. 
But overall average rates from MESA origins to destinations worldwide were up, YoY, by +50% in weeks 22 and 23, helping average worldwide rates to hold firm at $2.52 a kilo, despite YoY falls in average prices from Europe (-16%) and North America (-11%). 
Total worldwide chargeable weight flown in weeks 22 and 23 slipped slightly (-1%) compared with the previous two weeks (2Wo2W), but worldwide tonnages were up by +12%, YoY.--TradeArabia News Service


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