WorldACD Market Data reported a contraction in global air freight volumes during the week of April 8-14, while rates steadied after a period of consistent growth since mid-2022. Analysts believe this trend is linked to the Ramadan holiday. Specifically, during this week—week 15 of the year—global tonnages saw a three percent drop, and average global rates remained unchanged at $2.52 per kilogram.
Despite the slowdown, outgoing volumes from South Asia, which includes countries like India, Pakistan, and Bangladesh, remained high compared to normal levels for this time of year, especially towards European destinations. This sustained volume is largely due to the Red Sea crisis, which shifted traffic from sea to air. However, the Ramadan break led to a significant decrease in bookings, with Pakistan experiencing a 41% reduction in cargo, Bangladesh 14%, and the United Arab Emirates 29% to global destinations.
From Asia to Europe, cargo transport from India showed a year-on-year increase of 9%, while Sri Lanka registered an 8% weekly and 26% annual increase. Regarding freight rates, spot rates from India to Europe averaged over $4 per kilogram ($4.05), marking a 174% increase from the same period last year. Rates from Bangladesh to Europe also remained high, reaching $4.61 per kilogram, up 176% year-on-year.
Expanding the analysis to a two-week period, average global rates in weeks 14 and 15 saw a 4% increase compared to the previous two weeks, despite a 9% global drop in tonnages. This rise was supported by a 7% increase in rates originating from the Asia Pacific and a 5% increase from the MESA region. Rates from Europe and Africa remained stable despite significant drops in transported tonnages.
