Global air cargo rates reached their peak for 2024 in week 40 (September 30 to October 6), despite a decline in worldwide tonnage due to national holidays in China and disruptions in air traffic in the Middle East caused by rising tensions in the region. WorldACD Market Data reports that in the first week of October, average global spot rates increased by 1% from the previous week, reaching $2.84 per kilogram, the highest level recorded this year.
This increase was driven by rate hikes from the Asia Pacific (+1%), Africa (+2%), and Central and South America (+5%). Additionally, a 2% rise in contractual rates from Asia Pacific contributed to a 2% increase in the combined global average of spot and contractual rates, bringing it to $2.65 per kilogram.
At the same time, air cargo volumes from the Asia Pacific region fell by 7% in week 40, primarily due to the Golden Week holidays in China, which took place from October 1 to 6. The reduction in tonnage from Asia Pacific accounted for the majority of the global decline in volumes, which stood at 5%. Other regions also experienced significant drops: the Middle East and South Asia (MESA, -9%), Europe (-4%), and North America (-3%).
WorldACD's data analysis shows that a 14% decrease in intra-Asia Pacific traffic was the main driver behind the 7% drop in tonnage from the Asia Pacific region, accounting for more than two-thirds (68%) of the reduction. Within this intra-Asia decline, tonnage from China to other Asian destinations dropped by 21% compared to the previous week. The reduction in tonnage from Asia Pacific explained most (56%) of the global decline, while the rest was mainly attributed to European origins (18%) and MESA (15%).
Despite the decrease in tonnage from MESA origins, air cargo volumes from the region are still up year-on-year, with an 8% increase compared to the same period in 2023. Rates have risen by 54%, with spot rates surging by 78%. This region has been particularly impacted by disruptions in maritime capacity and supply chains following attacks on container shipping in the Red Sea. Air cargo capacity in the region was also affected last week by flight diversions and airspace closures.
Further analysis indicates that a 13% reduction in volumes from MESA to North America was the primary driver behind the 9% decrease in chargeable weight from MESA origins. In fact, one-third (33%) of the weekly decline from MESA was directed towards North American destinations, while 16% of the reduction in tonnage from MESA in week 40 was due to drops towards Asia Pacific.
