In the first full week of September 2024, global average spot air cargo rates soared to their highest level of the year. This surge was propelled by a spike in volumes and rates originating from the Asia-Pacific region, particularly toward North America and Europe. According to the latest data and analysis from WorldACD Market Data, in Week 36 (September 2-8), global average spot rates increased by 6% to $2.85 per kilogram compared to the previous week, marking a 30% rise from the same week last year. This uptick was bolstered by weekly increases of 6% from Asia-Pacific origins and 7% from the Middle East and South Asia (MESA), pushing spot rates from these regions to levels 41% and 101% higher year-on-year, respectively.
Global average contract rates also climbed by an additional 3%, reaching $2.48 per kilogram. This resulted in a combined market average rate of $2.59 per kilogram, factoring in both spot and contract rates—a weekly increase of 3% and an annual rise of 16%. This figure represents a 51% increase compared to the equivalent pre-COVID period in September 2019. Despite the rise in rates, global volumes slightly decreased by 1% in Week 36, largely due to a 12% drop from North American origins, linked to the Labor Day holidays on September 2 in the United States and Canada.
When combining data from Weeks 35 and 36, both global volumes and average rates saw a 2% increase compared to the preceding two weeks. This was mainly attributed to a 6% rise in volumes from Asia-Pacific origins and a 2% increase in rates from that region. Globally, capacity decreased by 2% on a bi-weekly basis, primarily due to a 5% reduction from North American origins.
Among the most significant changes, intra-Asia-Pacific volumes increased by 11% over the two-week period, continuing to recover from the impact of recent typhoons. Increases in volumes from Asia-Pacific origins to Europe (+6%) and to North America (+4%) contributed to an overall global chargeable weight that is 9% higher than the equivalent level last year, with average rates up by 15% year-on-year.
Spot rates from China to Europe experienced one of the largest jumps in Week 36, leaping 18% from the previous week to reach $4.39 per kilogram. This is one of the highest levels of the year and 46% higher than the same period last year. This rate increase coincided with a 4% growth in volumes from China to Europe.
Meanwhile, spot rates from Thailand to Europe rose by an additional 14% compared to the previous week, hitting $3.73 per kilogram. This represents a surge of over one-third (+34%) in just three weeks, bringing spot rates from Thailand to Europe to nearly double (+86%) what they were during the same period last year.
Average spot rates from Asia-Pacific to the United States increased further by 3% from the previous week, reaching $6.16 per kilogram—the highest level in several months and a 64% annual increase—while the transported chargeable weight remained stable. There are no clear signs of an overall decline in volumes from Asia-Pacific to the U.S. following new security measures introduced in the U.S. last month. However, volumes from China to the U.S., particularly to Los Angeles International Airport, have decreased significantly year-on-year over the past eight weeks, likely due to stricter customs checks on cargo originating from China since the beginning of the summer.
Regarding the Middle East and South Asia (MESA), volumes have been somewhat volatile in recent weeks, with a 21% drop in Dubai-Europe flights and a 21% increase in Colombo-Europe flights in Week 36. Nonetheless, spot rates from MESA origins to Europe remain exceptionally high, increasing by an additional 7% in Week 36 to reach an average of $3.42 per kilogram—more than double (+116%) the level of last year. This is thanks to further increases from Dubai (+8% from the previous week) and Bangladesh (+5% from the previous week), which reached $2.30 and $5.33 per kilogram, respectively.
