‘Cargo rates rise in last week of October’: WorldACD
According to WorldACD Market Data, average worldwide air cargo spot rates rose by a further +5% in the last full week of October, thanks to week-on-week (WoW) increases in spot prices from Asia Pacific (+3%), Europe (+7%), and Central & South America (CSA, +8%). Meanwhile global tonnages remained broadly flat, WoW, at around +4% above last year’s levels.
After remaining broadly stable for the previous three weeks, which included China’s Golden Week holiday and a two-week subsequent recovery period, average global spot rates rose to US$2.93 per kilo in week 43 (21-27 October), with the full-market average – based on a combination of spot and contract rates – rising +2% to $2.67. Those increases take spot rates +22% above their equivalent levels this time last year, with spot prices from Asia Pacific up +27%, year on year (YoY), and those from Middle East & South Asia (MESA) origins up +78%, YoY.
Markets in Asia Pacific and MESA (Middle East South Africa) origins, revealed that although tonnages from Asia Pacific origins to Europe were up slightly (+1%, WoW) in week 43, chargeable weight flown from China to Europe actually declined by -4%, WoW. That takes China to Europe tonnages down to the levels recorded in week 43 last year, and marks a significant contrast to the double-digit YoY percentage growth figures recorded for most of this year – although China to Europe volumes had already begun to surge this time last year.
Meanwhile, tonnages in week 43 from Hong Kong to Europe are around +30% up compared with their levels in early August, and up +29%, YoY, although they dipped slightly (-1%), WoW, in week 43. But several other significant Asia Pacific markets recorded strong WoW tonnage growth to Europe in the last two weeks, notably Taiwan (+32%) and Thailand (+30%). Spot rates from Hong Kong to Europe rose by a further +3% in week 43 to US$5.33 per kilo in week 43, their highest level this year, and a +18% increase compared with last year.
