The findings released by WorldACD Market Data on 29 November 2024 confirm an upward trend in air freight rates during the peak season, despite stable volumes. During the fourth week of November, global tonnage remained at the same level as the previous week, while the average global rate increased by 2%, reaching its highest point of 2024 at $2.79 per kilogram, mainly driven by rising spot rates, particularly from North America and Europe.
Average spot rates from North America rose by 12% in week 47 (18-24 November) compared to the previous week, reaching $2.04 per kilogram, while rates from Europe increased by 8%, reaching $2.90. Globally, spot rates rose by 4%, standing at $3.21, while contract rates experienced a slight decline of 1%, down to $2.65 per kilogram.
WorldACD's data, covering over 450,000 weekly transactions, highlights that average global rates in week 47 were 10% higher than during the same period last year, with spot rates up by 22% and contract rates up by 8%. While rates from the Asia Pacific and Middle East & South Asia regions remained stable compared to the previous week, they have risen significantly over recent months, by 8% and 46% year-on-year respectively. Despite the sharp weekly rise in rates from North America, this region remains the only one not surpassing last year's rate levels.
Although rates continue to increase, the weekly growth in global tonnage that characterised the start of the month came to a halt in week 47, with the exception of the Central & South America origin region, which recorded a 3% increase. Compared to last year, all origin regions showed positive development in terms of chargeable weight, except for Africa (-3%). The most significant growth was seen in North America, with a 22% increase, a notable jump from the previous week's 7%. This year-on-year increase was largely driven by the Thanksgiving holiday, which fell a week earlier last year.
At an inter-regional level, average rates rose significantly on the Europe-North America route (+8% on a weekly basis), while those from Asia Pacific to North America stabilised. Comparing week 47 with the same period last year, rates from Europe to North America were up by 24%, while those from Asia Pacific to North America saw a 10% increase. However, the average rate from China to the United States showed a decline of 3% year-on-year, dropping from $5.58 in 2023 to $5.43 in 2024.
These rate dynamics can be partly attributed to a shift in capacity from the transatlantic to the Asia Pacific region, in anticipation of a surge in shipments, largely related to e-commerce, primarily from China and Hong Kong to Europe and North America. The reduction in transatlantic capacity over the past three weeks amounted to 3% year-on-year, entirely attributable to a decrease in freighter capacity (-10%), while capacity in passenger aircraft belly holds remained stable. On routes between Asia Pacific and North America, however, capacity increased by 7% for both freighters and belly hold capacity.
WorldACD analysts add that more forwarders compared to last year booked their capacity ahead of the peak season, dampening the rate trends typically observed on Asia Pacific routes during this period.
