In mid-February, global air cargo experienced a marked decline, primarily driven by Lunar New Year holidays across China and parts of Asia. According to WorldACD Market Data, chargeable weights fell by approximately 20% during the holiday period, following weeks of growth. The decrease was fueled by factory closures and public holidays in major manufacturing countries, reducing international cargo flows annually around this festive season.
This year's decline was notably steeper than in previous years, with a 20% reduction compared to last year's 13%. Data reveals a 33% plunge in cargo volumes from Asia Pacific origins during the week the Lunar New Year was celebrated on February 17, with overall volumes 20% below last year's levels. Despite lower demand, capacity from China remained tight due to holiday-related cancellations, which helped keep freight rates stable from the region at around $3.05 per kilogram, representing a 6% increase over the previous year.
Market and Policy Impacts
Global average rates fell slightly by 4% week-on-week to $2.38 per kilo but remained 2% higher than last year. Spot rates from Asia Pacific declined by 5%, yet prices stayed marginally above the prior year's figures. Meanwhile, rates from Middle East & South Asia also increased slightly during this period. Recent legal rulings against US tariffs have introduced policy uncertainty; a new 10% global tariff has been temporarily implemented, with potential increases to 15%, which may impact future cargo movements.
The aviation sector continues to adapt to these fluctuations amid geopolitical and policy challenges, with many industry stakeholders monitoring upcoming changes to tariffs and trade regulations that could influence cargo capacity and rates in the coming months.
