Summer air cargo market ‘firmer than usual’

Global airfreight prices eased slightly last week, with the Baltic Air Freight Index dropping 1.1% week over week in the week ending July 15. Still, the index is ahead 10.2% year over year “in what continues to be a firmer than usual market for July, when there is often a mid-summer lull,” according to the latest report from TAC Index . [caption id="attachment_57144095" align="alignnone" width="1280"] (Courtesy/TAC Index)[/caption] The index of outbound routes from Hong Kong International Airport (HKG) rose 0.1% WoW. The increase was driven by increased rates to Europe, which left the ex-HKG index up 24.1% YoY, according to TAC Index. Though the outbound Shanghai Pudong International Airport (PVG) index fell 2.9% WoW, it remains up 32% YoY. Elsewhere in Asia, “rates out of India fell back a little after recent big gains, but out of Vietnam, rates were on the rise again both to Europe and the United States,” the TAC Index report stated. From Europe, the outbound Frankfurt Airport (FRA) index fell 3.6% WoW despite gains on rates to Asia, leaving the YoY decline at 14.5%. The outbound London Heathrow Airport (LHR) index rose 7.9% WoW, with gains on most major lanes trimming, leaving the YoY decline at 21.1%. In the Americas, rates from Chicago O’Hare International Airport (ORD) fell 1.4% WoW, leaving the YoY decline at 29.1%. “Overall, rates from the U.S. were falling a little to Europe and to China, as well as to South America,” the report stated. Fourth of July depresses demand Global air cargo demand dropped by about 5% WoW in the first week of July, mainly due to the impact of U.S. Independence Day, though average worldwide rates remain elevated due to increases from the Asia-Pacific region, according to the latest report from WorldACD Market Data . The 5% drop in worldwide tonnage in the week ending July 7 (week 27) included WoW decreases of: 13% from North America; 8% from Central and South America; 4% from Europe; and 3% from Asia Pacific. Worldwide tonnage increased 11% YoY in week 27, in line with June and second-quarter 2024 figures, according to the more than 450,000 weekly transactions tracked by WorldACD. For the two weeks ending July 7, tonnage were up 13%, YoY. [caption id="attachment_57144097" align="alignnone" width="845"] (Courtesy/WorldACD)[/caption] Average worldwide rates rose 2% WoW to $2.57 per kilogram in week 27, mainly driven by a 3% increase from Asia-Pacific, according to WorldACD. The rates were up 14% YoY and 48% from pre-pandemic July 2019. Average spot rates from Asia -Pacific to the United States in week 27 stood at $5.72 per kilogram, up 68% YoY. About half of Asia-Pacific tonnages to the U.S. originated from China and Hong Kong, where average spot rates were $5.34 per kilogram and $4.84 per kilogram, respectively, representing YoY increases of 38% and 12%, respectively. “But there have been some even higher prices and bigger increases in recent weeks from several other key Asia-Pacific origins,” the WorldACD report stated. Rates from Vietnam to the U.S. of $6.62 per kilogram were up 147% YoY, the highest increase of any Asia-Pacific nation to the U.S. Prices from Thailand at $6.46 per kilogram and Singapore at $7.02 per kilogram “have continued to rise strongly in recent weeks and are also more than double their equivalent levels last year,” the report stated. “Elsewhere, rates from Japan to the U.S. dropped back slightly in week 27 from their very high levels in week 26 to slightly above $6 per kilo, but they remain very high compared with last year, [up] 64% YoY,” the report stated.

Summer air cargo market ‘firmer than usual’

July 4 depressed global demand by 5% that week

Boeing factory workers step up pressure as strike deadline looms

Consultant’s Insight: Raising surcharges to protect revenue per piece

Related Posts

Retaliatory tariffs hit US imports into Canada

July cargo traffic data shows global growth ahead of uncertain peak

Freighter capacity grew in August

Consultant’s Insight: Raising surcharges to protect revenue per piece

Cargo Facts Free Newsletters

Cargo Facts Connect Podcast

Follow Us

Welcome Back!

Retrieve your password