Air cargo rates continue to rise in the first week of April

Global air cargo rates have continued to rise at around 2-3% consecutively through the first week of April with surges from the Middle East and South Asia (MESA) to Europe over the past three weeks, market data from WorldACD reported. MESA to Europe rates have risen to $3.43 a kilo in week 14, marking a 109% increase year on year. This comes despite the typical decline in tonnages linked to global holiday periods such as Easter, Ramadan, and Qingming Festival. In particular, Bangladesh and India have driven the strong demand with supply chain issues caused by container shipping disruptions and Ramadan. India to Europe spot rates have risen to more than $4 a kilo in week 14, up 160% YoY and Bangladesh to Europe spot rates have soared 179% YoY to $4.59 a kilo. While rates have continued to rise globally between weeks 13 and 14, on a YoY basis, however, only MESA has reported an increase in rates at 39% while other regions' rates declined. Notably, Europe air cargo rates have declined 22% and North American rates declined by 18% YoY. Additionally, Dubai to Europe demand continued to boom, up 114% in week 14 YoY, though Colombo to Europe tonnages have slipped 2% YoY.