WorldAcd Market Data’s weekly analysis of the air freight market shows that for the period between October 18 and November 3, 2024 (week 44 of the year), freight rates rose by 2% compared to the previous week, reaching $2.71 per kilogram. This increase brought rates up by 12% compared to the same period last year.
In particular, rates from Asia-Pacific and Europe climbed to $3.56 and $2.13 per kilogram respectively, with weekly increases of 2%. Rates from Africa also saw a 3% rise, reaching $1.98 per kilogram, while those from North America, Central and South America (CSA), and Middle East and South Asia (MESA) remained stable. These increases occurred despite a decline in volumes, partly attributed to national holidays on November 1 and 2.
Comparing the past two weeks to the two preceding weeks shows a 3% rise in average freight rates, driven by a 4% increase from Asia-Pacific and Europe, which pushed global average prices up 12% year-on-year. Capacity and chargeable weight carried were both down by 1%, with capacity declining by 2% compared to last year, while volumes remained up by 5%, driven by growth across all major global regions, including a 6% increase from Asia-Pacific and North America, and an 8% increase from MESA and CSA.
The continued rise in rates from Asia-Pacific in week 44, driven primarily by China, reflects still strong demand from the region, further boosted in the final quarter. Meanwhile, rising spot rates from Europe, particularly to North America, are partly in response to reduced bellyhold capacity on transatlantic routes as the winter season begins and due to temporary capacity cuts related to national holidays.
The 6% reduction in cargo capacity from Europe in week 44 contributed to already high load factors on the westbound transatlantic market. This increase in rates from Europe did not occur during the same week last year, when load factors were several percentage points lower.
A more detailed analysis of the Asia-Pacific market shows a 12% surge in spot rates from mainland China to Europe, reaching $4.68 per kilogram, and an 8% increase from Japan, bringing rates to $4.58 per kilogram, with year-on-year increases of 26% and 42%, respectively. Rates from China to the United States also rose in week 44, with a 3% increase to a new high of $5.90 per kilogram.
Spot rates from MESA to Europe rose by an additional 4% in week 44, reaching $3.29 per kilogram, nearly double the rate from the same period last year. The 9% increase from the highly volatile Bangladesh market (to $5.12 per kilogram) more than offset the 6% drop in spot rates for cargo from Sri Lanka, where volumes have declined in recent weeks compared to September levels.
