The global air cargo market saw a 3% dip in tonnages during week 38 (September 16-22), mainly due to national holidays in China, South Korea, and Chile. According to WorldACD, the drop in chargeable weight was largely driven by a 6% week-on-week (WoW) decline from Asia Pacific, accounting for 73% of the global decrease.
Impact of Holidays in Asia Pacific and Central & South America
The sharp decline in Asia Pacific volumes was due to seasonal holiday effects. It was especially notable during the mid-autumn or harvest festivals in East Asia, which took place from September 16 to 18.
Most of the drop came from South Korea (33% drop, representing 50% of the Asia Pacific’s decline) and China (6% drop, 30% of the region’s fall). Tonnages in week 38 were 6% higher than the same period last year, although this is below the double-digit year-on-year growth seen earlier in 2024.
In Central and South America (CSA), a 6% WoW decline in tonnages was primarily due to a nearly 50% drop from Chile during its national holidays (September 18-20). It accounted for 12% of the global decline.
Strong Rate Trends Amid Seasonal Tonnage Dip
Despite the reduction in cargo volumes, airfreight rates remained strong, especially in the Asia Pacific and Middle East & South Asia (MESA) regions. This situation was driven by e-commerce growth and geopolitical tensions in the Middle East.
Average global rates were flat WoW, with notable increases from Africa (up 4%), Asia Pacific (up 1%), and MESA (up 4%). Meanwhile, rates in other regions, including North America, experienced a slight 2% decrease.
In addition, rates from Asia Pacific reached $3.42 per kilo, marking a 22% year-on-year increase and surpassing the 2023 Q4 peak. Rates from MESA stood at $2.94 per kilo, representing a 62% YoY increase.
Spot rates from Bangladesh hit new highs due to ongoing political and logistical disruptions. Rates to the US surged to $7.83 per kilo, up 213% YoY, making Bangladesh one of the most expensive air cargo routes globally.
Looking Forward
WorldACD’s analysis suggests that the dip in week 38 is likely a temporary and seasonal fluctuation rather than a sign of weakening global demand. As geopolitical tensions and logistical disruptions persist, particularly in the Middle East and Bangladesh, air cargo rates are expected to stay elevated.
How Airsupply Can Help
At Airsupply, we understand the complexities of global air cargo. Our expertise in navigating volatile markets allows us to provide tailored logistics solutions at competitive prices. Whether securing alternative routes, managing rate fluctuations, or offering real-time updates, we are committed to keeping your supply chain moving smoothly.
