Air Cargo Rates Stabilize Globally While Tonnages Fall Further

The beginning of August saw a continuation of the decreasing tonnages witnessed in recent months, while rates on a global level have stabilized during the last four weeks, according to the latest figures from WorldACD Market Data.

Figures for week 31 (31 July to 6 August) show a -3% drop in tonnages compared with the previous week, while average worldwide air cargo prices increased just slightly (+1%), week on week (WoW), based on the more than 400,000 weekly transactions covered by WorldACD’s data.

Comparing weeks 30 and 31 with the preceding two weeks (2Wo2W), overall tonnages dropped by -2% versus their combined total in weeks 28 and 29, while capacity and average worldwide rates remained flat.

At a regional level, significant decreases in tonnages were recorded with only one notable increase recorded, on the flow ex-Middle-East & South Asia to Europe (+5%).

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On the pricing side, overall average rates remained stable (2Wo2W), and also on a regional level, varying between -2% and +2% maximum.

Year-on-Year perspective

Comparing the overall global market with this time last year, chargeable weight in weeks 30 and 31 was down -6% compared with the equivalent period last year (YoY), with strong decreases in tonnages ex-North America (-19%) and ex-Europe (-8%).

The only increase was recorded ex-Middle East & South Asia (+3%).

Overall capacity has increased by +9% compared with last year, with capacity ex-Asia Pacific up by a noteworthy +31%.

Other double digit percentage YoY capacity increases can be observed ex-Middle East & South Asia (+11%) and ex-Africa (+10%), while a decrease was recorded from Central & South America (-5%).

Worldwide average rates are currently -37% below their levels this time last year, at an average of US$2.28 per kilo in week 31, although they remain significantly above pre-Covid levels (+33% compared to August 2019).

Read More: Middle East Air Cargo Volumes Rebound in June: IATA