In July 2024, air cargo transportation showed signs of a strong rebound, with volumes and rates growing by 12% compared to the same period last year. This increase, reported by WorldACD Market Data, was supported by sustained demand in sectors like e-commerce and ongoing challenges in global supply chains, particularly due to the Red Sea crisis. Recent data indicates that average global rates rose by 2% from June, reaching $2.50 per kilogram, a 44% increase compared to July 2019, the last pre-COVID reference period.
This growth is part of a steady upward trend, with rates climbing from an average of $2.30 in the first quarter to $2.45 in the second quarter. The 12% annual increase in July represents the most significant monthly rise of the year, surpassing the 2% and 6% gains recorded in May and June, respectively. However, this figure largely reflects a gradual decline in average rates that occurred last year. One of the main drivers of this growth was the Asia-Pacific to United States route, where spot rates averaged $5.80 per kilogram, nearly 70% higher than in July 2023.
During week 31, covering the period from July 29 to August 4, global average rates remained stable, with a slight 5% decline in rates originating from Africa, while other major origin regions maintained or slightly increased prices. Compared to last year, rates of $2.49 per kilogram represent a 12% increase, largely due to strong year-over-year gains of 56% from the Middle East and South Asia (MESA) and 22% from Asia-Pacific origins.
Combining data from weeks 30 and 31, both volumes and rates dipped slightly by 1% compared to the previous two weeks but remain well above last year's levels, with a 9% increase in volumes and a 12% rise in rates, mainly driven by traffic from the Asia-Pacific and MESA regions. Capacity, however, grew by only 3% compared to the previous year.
Amid ongoing political and logistical disruptions, Bangladesh saw a recovery in air cargo volumes to Europe in week 31. After a significant drop in weeks 28 and 29, volumes returned to the levels seen in weeks 25-28. However, these volumes are still below the levels recorded during the same period last year, which had been particularly strong for traffic from Bangladesh to Europe.
On the rate front, spot prices from Bangladesh to Europe continued to rise in week 31, reaching the highest level of the year at $4.87 per kilogram, nearly three times (+173%) higher than the same period last year. This increase was fueled by disruptions in air and customs services in the country, exacerbating an already tight market capacity.
