The Red Sea crisis, which is impacting the cargo maritime transportation between Asia and Europe, shows no signs of a positive resolution, thereby continuing to benefit air transport. According to WorldACD Market Data, in the twelfth week of 2024, rates increased, with the global average rate rising by +3% to $2.45 per kilogram for the week of March 18 to 24. This rate is nearing the high levels seen in the same period the previous year, despite a slight 2% decrease in global tonnage compared to the preceding week.
Comparing the last two weeks (eleventh and twelfth against ninth and tenth), there's been a 1% increase in tonnage and a +6% increase in rates, with capacity up by +2%. This rate hike was led primarily by increases of 10% from the Middle East & South Asia (Mesa) and 7% from the Asia Pacific.
Six weeks post-Chinese Lunar New Year, yearly comparisons become more meaningful, revealing significant improvements in demand levels compared to the previous year. Globally, tonnages have risen by 8%, with a notable +15% from the Middle East & South Asia and +12% from the Asia Pacific, driven both by disruptions in Asia-Europe container transport – due to attacks on ships in the Red Sea – and strong e-commerce demand.
WorldACD's analysis highlights the continued growth in demand and rates from Mesa origins. With a year-on-year tonnage increase of 15% and a capacity growth of 6%, this region also records a 29% annual increase in average rates for the combined eleventh and twelfth weeks, in addition to a +10% rise over the preceding two weeks.
Analysts also note exceptionally high air transport demand to Europe from maritime-air hubs like Dubai, Colombo, and Bangkok, primarily due to disruptions in Asia-Europe container maritime transport. Specifically, tonnages from Dubai to Europe saw a significant increase (+162%), as did those from Bangkok (+46%) and Colombo (+22%) in the last two weeks.
