In the first half of June 2024, the trend of rising air freight volumes and rates persists. According to WorldACD data released by Xeneta on June 14, both elements in the past two weeks (weeks 22 and 23) remain significantly above the levels of the same period in 2023. Over the past five weeks (up to June 9), overall volumes and rates (both spot and contractual) from Asia-Pacific origins have increased by 20% and 16%, respectively, compared to the previous year.
Focusing on spot rates alone, there have been significant fluctuations in recent weeks among various major Asia-Pacific origin countries, particularly towards Europe. Shippers are facing significant capacity shortages in both air and sea transport due to high demand and disrupted maritime services from the Red Sea crisis. Adding to the maritime transport woes are port congestion and container space shortages.
Xeneta reports that spot air cargo rates from Vietnam to Europe are more than double the level of last year, averaging $4.19 per kilogram over the past seven weeks. WorldACD's analysis indicates that rates have risen for six consecutive weeks, reaching $4.47 per kilogram in week 23 (June 3-9), marking a 143% annual increase (with volumes up 28%).
In Europe, spot rates to the continent in week 23 have seen significant annual increases from most major Asia-Pacific origin markets, with values reaching 32% from China and 18% from Hong Kong. Smaller markets in the region have also recorded higher percentage increases in spot rates in week 23, including Malaysia (+83%), Indonesia (+46%), and Thailand (+43%).
Xeneta also notes rising volumes and rates on transpacific flights. Compared to the same period last year, in week 23, the average spot rates to the United States from Asia-Pacific and China origins are $5.23 (+51% year-on-year) and $5.30 per kilogram (+38% year-on-year), respectively.
The trend of rising volumes and rates is also evident from Middle East and South Asia (MESA) origins, particularly towards Europe. Spot rates have averaged more than double the equivalent level last year for the past ten consecutive weeks, driven especially by highly elevated spot prices from India and Bangladesh.
Overall, average rates from MESA origins to global destinations have increased by 50% year-on-year in weeks 22 and 23, helping to stabilize the global average rate at $2.52 per kilogram, despite annual declines in average prices from Europe (-16%) and North America (-11%).
Finally, regarding global air shipment weights in weeks 22 and 23, there was a slight decrease (by one percent) compared to the previous two weeks. However, on an annual comparison, there is a 12% increase.
