Asia and Middle East drive air cargo rate stability

Air cargo rates have been kept stable in week 24 of the year - a typically quiet period for the market - driven largely by continuing strong demand and high spot rates from Asian and Middle Eastern origins, according to WorldACD market data. Rates had stabilised at $2.51 per kilogram, up 8% year-on-year (YoY) as well as a significant 42% increase over the same period in pre-pandemic 2019. Overall tonnages fell by 2% compared to the previous week. However, compared with the previous two weeks, reveals a 1% rise in both rates and tonnages. However, tonnages and rates were up 11% and 8% YoY respectively. This was driven by a notable 52% YoY increase in rates and 13% increase in tonnages from Middle East & south Asia (MESA) origins. In addition, rates and tonnages from Asia Pacific increased 17% and 16% YoY respectively. Spot rates for air cargo from the Asia Pacific to the US soared from $4.80 to $5.34 per kilogram over the past five weeks, while China to the USA spot rates increased from $4.91 to $5.25. Meanwhile, routes from China to Los Angeles experienced rate hikes amid customs delays, with a notable 38% rise from the same period last year. Despite these rate increases, China to Los Angeles tonnages have declined, reflecting disruptions in freighter schedules.