According to the latest WorldACD Market Data weekly figures and analyses, air cargo demand and rates continue to rise well above levels from last year. In particular, spot rates from Vietnam into Europe have risen even more in the last two week, with rates from Vietnam to Europe in particular spiking in the last couple of weeks.
Based on more than 450,000 weekly trades covered by WorldACD, the tonnages of goods and rates for Asia Pacific origins have increased by 20 percent (YoY), and by 16 percent (YoY), respectively, over the last two weeks (weeks 22 & 23), based upon a full-market median of spot rates and contractual rates.
“Looking at spot prices on their own highlights big differences in the last few week between the main Asia Pacific origin country, especially to Europe as shippers face significant shortages both of air and ocean freight capacities due to strong demand, and disrupted services for sea freight.” The disruptions to container services, which were partly caused by the attacks against vessels in the Red Sea have been exacerbated in recent weeks because of port congestion and vessel shortages in certain important markets, driving more cargo owner to air freight solutions.
The update said that spot air cargo rates from Vietnam to Europe were more than twice their equivalent levels this time last year. They averaged $4.19 per kilogram in the last seven week, the update added. “Analysis of this week shows that they have increased for the last six weeks to $4.47/kilo (June 3-9). This is up by 143 per cent YoY (with tons up 28 per cent YoY).
In week 23, spot rates to Europe were up significantly from the major Asia Pacific origin markets, including +32 percent for China and +18% for Hong Kong. These are the two largest origin markets of the region.
The transpacific market is also experiencing higher demand and rates compared to last year. In week 23, the average spot rate for the USA from Asia Pacific origins and China was $5.23 (up 51 percent YoY), and $5.30 (up 38 percent YoY).
Middle East, South Asia boom continues
The update said that the demand and rates for products from Middle East & South Asia origins continued to rise – particularly to Europe. Spot rates from MESA origins were more than double their equivalent levels last year, and this was mainly due to the high spot prices from India & Bangladesh. “Overall average MESA origins rates to destinations worldwide were up by 50 percent YoY in weeks 22-23, helping average worldwide rates hold steady at $2.52 per kilo, despite YoY drops in prices from Europe and North America.”
The update noted that the total worldwide chargeable weight flown during weeks 22 and 23, compared to the two previous weeks (2Wo2W), had decreased slightly (down by one percent), but that worldwide tonnages increased by 12 percent year-over-year.