According to the latest data released by WorldACD Market Data, global air cargo volumes saw a slight decrease of 1% in the second week of August 2024 compared to the previous week, continuing a downward trend that has led to a 3% drop in overall volumes since early July. Despite this, average global freight rates held firm, stabilizing around $2.50 per kilogram.
The data, based on over 450,000 weekly transactions, indicates that despite the slight dip in global volumes, the worldwide average price increased by 1% in week 32 (August 5-11) compared to the previous week. This trend was primarily driven by rate increases in certain key regions, while others saw slight declines, such as Africa, where rates fell by 2%.
Looking at a broader period, the global spot rate average increased by 3% in the first week of August compared to early July, reaching $2.71 per kilogram. This represents a 22% increase compared to the same period last year. However, contract rates remained stable at $2.40 per kilogram. Overall, the combined average of spot and contract rates, at $2.50, marks a 46% increase compared to pre-Covid levels in August 2019.
A more detailed analysis reveals that regional markets are significantly influencing global dynamics. Volumes from the Asia-Pacific and Middle East-South Asia (MESA) regions continued to drive growth, with year-on-year rate increases of 23% and 55%, respectively. However, in Europe, rates contracted by 11% compared to the same period in 2023.
Specifically, cargo traffic from China to the United States recorded a further 7% weekly decline during week 32, marking the fourth drop in five weeks. This decline has led to an overall reduction of 12% since early July. Similarly, traffic from Vietnam to Europe showed signs of weakness, with a 6% drop between weeks 31 and 32, marking the third consecutive weekly decline. Despite this, spot rates from Vietnam to Europe remained stable, standing nearly three times higher than the previous year's levels (+176% year-on-year, reaching $4.76 per kilogram).
Meanwhile, Bangladesh showed signs of recovery following the July unrest, although the volume increase slowed significantly: from +39% in week 31 to +4% in week 32. Spot rates, however, continued to rise at a strong pace, though at a slower rate than the previous week, with a 151% increase in week 32 compared to +169% in week 31.
The Asia-Pacific to USA sector remained crucial for the rise in global average rates since the end of June, with spot rates hovering slightly above $5.80 per kilogram over the past three weeks. Compared to week 32 last year, spot rates from Asia-Pacific to the US increased by 64%. However, volumes from China to Los Angeles continued to decline, with a 5% weekly drop in week 32, leading to the most significant year-on-year decrease (-21%) since volumes began to shrink six weeks ago. Spot rates on this route stabilized, although they recorded a 30% year-on-year increase.
