Global air cargo rates and demand witnessed modest increases during the second full week of March, according to the latest weekly figures from WorldACD Market Data. While most regions recorded growth, the Middle East & South Asia (MESA) region was the sole major origin area to register a decline in tonnages.
Market Overview
In Week 11 (March 10–16), worldwide tonnages rose by +1% compared to the previous week, marking a +3% year-on-year (YoY) increase. This week-on-week (WoW) growth was primarily driven by gains in Central & South America (+4%) and the Asia Pacific (+3%), as markets in the latter region continued to recover from the Lunar New Year (LNY) holiday.
Conversely, flown tonnages from MESA origins dropped by -4% WoW, partially due to business closures during India’s Hindu spring festival, Holi (March 13–14). However, when averaged over the last two weeks, flown tonnages from MESA were comparable to those in the preceding weeks (8 and 9). This included a -3% decline in shipments to Europe, offset by a +9% increase to Asia Pacific destinations.
Asia Pacific: Rebounding Strongly
Using a two-week-on-two-week (2Wo2W) comparison, Asia Pacific markets demonstrated robust recovery in Weeks 10 and 11 following the post-LNY lull.
To Europe: Shipments from Asia Pacific to Europe rose by +13%, with Week 11 recording a further +7% WoW gain, marking the fifth consecutive week of growth. These volumes reached their highest level this year, only about -10% below mid-December figures.
Significant WoW growth was seen from key markets:
China (+7%)
Hong Kong (+5%)
Japan (+5%)
South Korea (+18%)
Taiwan (+13%)
Vietnam (+9%)
To North America: Tonnages from Asia Pacific to the USA recorded their fifth straight WoW increase, rising +5% in Week 11. Key contributors included:
China (+6%)
Hong Kong (+6%)
Japan (+3%)
South Korea (+13%)
Taiwan (+2%)
Vietnam (+3%)
The sharp WoW increases from South Korea to both Europe and the USA in Week 11 followed steep declines the previous week, where tonnages fell -11% to Europe and -13% to the USA, respectively.
Pricing Trends
Asia Pacific to Europe:
Spot rates averaged $3.92 per kilogram, largely stable compared to the previous week, with no significant WoW changes across key origin markets.
Rates from China to Europe dropped -2% to $3.87 per kilogram, marking the fifth consecutive WoW decline.
Despite recent declines, spot rates remain +16% higher YoY, including notable YoY increases from:
China (+8%)
Hong Kong (+16%)
Japan (+18%)
Asia Pacific to the USA:
Average spot rates were $4.91 per kilogram, a slight WoW decrease (-1%), but still +11% higher YoY.
Notable WoW variations by origin:
China and South Korea saw sharp increases in rates (+15%), while
Japan and Vietnam experienced significant declines (-8% and -11%, respectively).
Global Averages:
Worldwide average rates rose +3% WoW to $2.37 per kilogram (a mix of spot and contract rates), placing them +2% above YoY levels.
The global air cargo market continues to demonstrate resilience, with incremental growth in tonnages and rates despite regional disparities and external factors such as festivals and post-holiday slowdowns. Asia Pacific’s strong rebound, coupled with stabilizing pricing trends, underscores the ongoing recovery of the air cargo sector as it adapts to shifting dynamics.
Source: https://aircargoweek.com/rates-and-demand-continue-on-slight-upward-trend/
Average worldwide air cargo rates regained a further +4% in the third full week of March, taking them back to around their levels in mid-January and last summer, as the market...
Preliminary traffic data for February 2025, released by the Association of Asia Pacific Airlines (AAPA), indicates a slowdown in air cargo demand growth, primarily attributed...
The latest data from the TAC Index highlights a continued rally in global air freight rates, despite a mixed outlook for international trade and markets.
Recent insights from Freightos reveal a consistent decline in container shipping rates originating from Asia, with current levels falling below the lowest points recorded...
Global air cargo rates and demand edged slightly further upwards in the second full week of March, with Middle East & South Asia (MESA) the only major origin region registering...
Lufthansa Cargo projects that the air cargo market will experience growth in 2025, even as geopolitical events and economic uncertainties fuel ongoing market volatility. The...
The latest chapter in the Trump administration’s tariff saga has once again disrupted global trade. Recent announcements of sweeping trade barriers targeting Canada, Mexico,...
The air cargo industry, deeply connected to global trade dynamics, has faced increasing volatility in recent years, resulting in significant financial repercussions. It is...
Xeneta had initially predicted a 4% to 6% year-over-year increase in global air cargo demand for 2025 following a year of double-digit growth. However, trade uncertainty has...
ALS