In the final week of July 2024, the growth of air cargo transportation slowed, with the amount of cargo carried remaining stable compared to the previous week, although showing a slight year-over-year increase of 6%. According to weekly data from WorldACD Market Data, the situation was particularly affected by service disruptions in Bangladesh, caused by political protests that led to internet blackouts for several days.
Tonnage from Bangladesh to Europe decreased by 29% in week 29 (July 15-21) compared to the previous week. Despite a slight recovery of 6% in week 30 (July 22-28), volumes remained roughly 50% lower than the previous year, in a market that had generally shown significant growth in 2024. This situation was exacerbated by IT disruptions in several countries on July 19, though there is no concrete evidence linking these events to the decline in tonnage.
Regionally, week 30 showed a decline in tonnage in four of the six major regions of the world. Notably, there were decreases of 4% from Central and South America, and 1% from Asia Pacific, North America, and Africa. Conversely, tonnage increased in Europe (+2%) and the Middle East and South Asia (+1%), keeping overall global volumes stable compared to the previous week.
The year-over-year comparison shows a 6% increase in tonnage, although this is lower than the average of 12% recorded in the first half of 2024 and 11% in the second quarter. Combining data from weeks 29 and 30, there is a 7% year-over-year increase, suggesting a possible slowdown in growth in the latter part of July. Compared to the two previous weeks, tonnage decreased by 2%.
As for freight rates, data shows a slight decline of 1% in week 30, while remaining stable on a biweekly basis. Globally, rates remain significantly higher compared to the pre-Covid period of July 2019, with an average increase of 45%.
From Asia Pacific to the United States, spot market rates slightly decreased (-3%) in week 30, accompanied by a reduction in demand (-2%). However, they remain significantly higher compared to the previous year (+62%), with prices from Singapore to the United States exceeding $9 per kilogram in three of the last four weeks, reaching $9.25 per kilogram in week 30.
In Europe, spot rates from Singapore increased by 58% year-over-year, while prices from Vietnam to Europe remained above $4 per kilogram for the last 11 consecutive weeks, reaching $4.80 in week 30, double compared to the same period last year.
Disruptions in maritime transport in the Red Sea continue to affect freight rates from the Middle East and South Asia to Europe, which remain more than double the levels of the previous year, stabilizing at $3.30 per kilogram (+135% year-over-year). Among the highest annual increases were rates from Bangladesh ($4.54, +142%), Sri Lanka ($3.95, +183%), India ($3.44, +169%), and Dubai ($2.66, +152%), where demand continues to exceed available capacity.
