Air cargo rates rise throughout March to 2023 fourth quarter levels

Global air cargo rates maintained an upward trajectory in March, driven by robust demand and rising rates from Asian and Middle Eastern origins, reveals data from WorldACD Market Data. The average price surged to within -7% of last year's elevated levels, reminiscent of the peak season in the winter of 2023. Weekly figures show a consistent rise, with rates increasing by around +2% in week 13 to $2.48 per kilo, following consecutive weekly upticks of between +2% and +3% in the previous month. This trend narrowed the gap between rates this year and last year. Notably, rates in January and February were -19% below 2023 levels, but by March, the gap shrunk to just -7%. The resurgence in rates mirrors a recovery since the fourth quarter of 2023, almost reaching Q4 peak levels. Particularly, rates from Asia Pacific and Middle East & South Asia surged due to heightened cross-border e-commerce demand and disruptions in container shipping. The two-week comparison indicates a +5% increase in global rates, primarily driven by Asian and Middle Eastern origins.