Global air cargo demand in January remains ‘significantly up’ compared with a comparable period in 2023, reports WorldACD market Data, with all regions except North America noting tonnages ahead of last year’s figures.
Although freight forwarders ‘continue to report anecdotally that certain cargo owners are switching some Asia-Europe cargo from sea to air or sea-air because of longer ocean voyage caused by the disruptions in the Red Sea, World ACD says it is ‘difficult to separate this’ from the anticipated mid-January uptick following the New Year slowdown.
Despite the disruption in the Red Sea (and a threefold increase in ocean freight rates from Asia to Europe), air cargo rates remain relatively stable globally. Additionally, some air freight company are blocking additional capacity on core trade lanes, with the anticipation of overcrowded European ports ahead of Lunar New Year further driving traffic towards air cargo. Year on year, global demand across weeks two and three of 2024 is up 6%, with a 21% increase in cargo ex-Middle East and South Asia reflecting additional adoption of air freight.
Overall global air cargo capacity remains 12% above last year’s levels, with double-digit percentage rises ex-Asia Pacific, Middle East and South Asia, and Central and South America. Worldwide rates remain -22% below elevated levels this time last year (now averaging $2.35 per kilo), with freight ex-Europe showing the most significant demand (-34%). Average rates from Central and South America and Africa remained more stable at -5% and -6% respectively.
Following a 25% rise in tonnages in week two of 2024, world tonnages are now back ‘up close to their levels in the third week of December’ and around 90% of their peak levels in October and November 2023. Average rates were down by -2%, with capacity up 3%.