In late October, world air cargo spot rates experienced notable growth despite a significant fall in overall tonnages. According to recent data from WorldACD Market Data, global spot prices increased by 4% in week 43, with major origins such as Asia Pacific, Europe, and North America contributing to this rise. The growth occurred even as tonnages from India dropped sharply due to Diwali holidays, illustrating a misalignment between rates and volumes.
Analysts highlight that, excluding the traffic decline from India, worldwide tonnages only dropped by 1% during the same period. This suggests potential capacity constraints, as demand from key markets appears to be rebuilding ahead of upcoming holiday seasons like Thanksgiving and Christmas.
Regional Rate Developments
In Asia Pacific, rates from the region to the US increased further, with rates from China and South Korea reaching their highest levels since July. Notably, China to the US surged by 11%, while South Korea to the US increased by 21%. Meanwhile, rates from Taiwan and Vietnam to the US also rose modestly. Conversely, rates from Asia Pacific to Europe remained relatively stable, with modest weekly gains of 2% on average, reaching their highest levels since June.
"The rising spot rates amid declining tonnages suggest a tightening capacity environment in the coming weeks," said WorldACD Market Data.
Contact information for the editor at Asian Aviation was provided for further inquiries. Overall, the market indicates mixed but cautiously optimistic signals for the upcoming peak season, with capacity pressures beginning to emerge from key regions.
