Global spot rates rose an average of 5% week on week in week 43 (Oct. 19 to 25) to US$3.80 per kilo, up 38% year on year, even as tonnages slipped 2%, according to WorldACD
Asia Pacific to US spot rates hit $7.43 per kilo, up 41% year on year, while Asia Pacific to Europe rates reached $5.10
Capacity remains tight on Middle East tensions and high jet fuel costs, and rates are likely to rise further before Christmas, WorldACD said
Global air cargo spot rates kept rising in the second half of October even as volumes dipped, WorldACD Market Data said. Week 43 spot rates rose 5% from the week before, following a 4% rise in week 42. Europe led with a 7% gain, followed by Asia Pacific at 6% and Central and South America at 5%.
The average worldwide spot rate is now $3.80 per kilo. Full-market rates, which mix spot and contract prices, rose 3% to $3.33 per kilo, up 31% from a year earlier.
Worldwide tonnages fell 2% week on week but were 2% higher than a year ago. Capacity slipped 1% week on week and was 1% higher year on year, mainly due to more freighter services. A typhoon that disrupted flights in Taiwan cut Asia Pacific capacity by 1%.
Middle East still constrains capacity
Capacity from the Middle East and South Asia was 13% below its level in late February, just before the start of the US-Israel war against Iran, WorldACD said. Capacity from the Arabian Gulf was down 19%. Riyadh was almost completely closed to international flights in week 43.
Asia to Europe weak, Asia to US strong
Demand from Asia Pacific has split sharply by destination. Chargeable weight from Asia Pacific to the European Union fell 16% year on year in week 43, while volumes to the US rose 9%.
WorldACD tied part of the gap to strong US demand for AI-related high-tech imports, especially from Taiwan and parts of Southeast Asia. It also pointed to the EU’s removal of ‘de minimis’ exemptions on items worth less than €150 from July 1. Tonnages from Hong Kong to the EU fell by a third and from mainland China by 9%. A new €2 per item import handling fee from Nov. 1 may weigh further on China and Hong Kong volumes to Europe.
Asia Pacific to US spot rates rose 7% to $7.43 per kilo, with South Korea up 26% week on week, mainland China up 15% and Japan up 14%. Year on year, rates were 41% higher, with Japan up 59%, South Korea 55%, Indonesia 53%, Thailand 47% and Singapore 46%. Asia Pacific to Europe rates rose 5% to $5.10 per kilo, almost 30% higher than a year ago.
