May 2024 ended with a robust increase in air cargo transportation, both in terms of volumes and rates, according to WorldACD Market Data. In the fifth month of the year, demand for air freight showed a strong rise, with a 17% increase in transported tonnage compared to May 2023. WorldACD Market Data analysts attribute this growth to disruptions in maritime transport services caused by attacks on container ships in the Red Sea and Gulf of Aden, prompting many companies to turn to air freight as an alternative. Shipments originating from Asia Pacific were particularly noteworthy, showing a 21% increase in tonnage compared to the previous year, marking the highest annual growth rate since January.
In the last two weeks – weeks 21 (May 20-26) and 22 (May 27-June 2) – outbound volumes from Asia Pacific increased by 16%. European and Mesa (Middle East and South Asia) origins also saw increases of 1% and 2% respectively during this period, balancing contractions recorded in North America (-5%), Africa (-3%), and Central and South America (-3%). Overall, the global average rose by 9%.
Air cargo rates also saw a significant increase, particularly from Mesa origins to Europe, where average spot rates in May reached $3.35 per kilo, more than double compared to May of the previous year, with a 128% increase in week 22 year-on-year. Global average rates for May were $2.78 per kilo, a 47% rise from the previous year.
The rate increase was particularly pronounced for shipments from India and Bangladesh to Europe, with values at $3.78 per kilo (+160%) and $4.38 per kilo (+189%) respectively. Rates from Sri Lanka and Dubai also showed an upward trend for most of the year, reaching $2.95 and $2.28 per kilo in week 22, nearly double the levels of the same period last year.
Asia Pacific origins saw their first significant year-on-year rate increase for an entire month of May, with a rise of nearly 12%. Despite the decline in rates in other regions, the strength of shipments from Asia Pacific and Mesa origins kept global average rates stable in week 22, with a 1% increase from the previous week and a 7% increase from the previous year.
