Air cargo tonnages from China and Hong Kong to the US bounced back in the last full week of July as capacity returned following flight cancellations the previous week linked to Typhoon Wipha, although volumes to Europe have been slower to recover.
According to the latest weekly figures from WorldACD Market Data, tonnages from China and Hong Kong to the US rebounded in week 30 (21 to 27 July) with a +4% week-on-week (WoW) increase from China and a +5% rise from Hong Kong. That followed WoW declines the previous week of -3% and -9%, respectively, after Typhoon Wipha caused hundreds of flights to be cancelled from Hong Kong and parts of Southeast China on 19 and 20 July. But tonnages from Hong Kong to Europe only partially bounced back with a +2% WoW increase in week 30, following a -7% WoW drop in week 29. And China to Europe tonnages dipped by a further -2% in week 30 after declining -6%, WoW, the previous week.
The return of capacity and tonnages from Hong Kong and Southeast China to the US contributed to further gains in week 30 of +3%, WoW, for the Asia Pacific to the US as a whole, a market that has been particularly turbulent this year.
On the pricing side, spot rates from Asia Pacific to the US were relatively stable in week 30, rising +2%, WoW, to US$4.89 per kilo, based on the more than 500,000 weekly transactions covered by WorldACD’s data. Another Asia Pacific market that has seen volatility in the last two weeks is South Korea to the US: following a -17% WoW drop in spot rates in week 29, spot prices rebounded in week 30 with a +29% increase to an average of $6.01 per kilo, their highest level since week 8 and their second-highest level this year.
Asia Pacific to Europe was relatively stable in week 30, recording a -2% WoW overall decline in flown tonnages, with the biggest change recorded being Japan to Europe, which recorded a -10% WoW decline.
Relative stability in July
Nevertheless, worldwide air cargo markets have been relatively stable in July, following a turbulent period in recent months linked to US trade policies and tariffs, and average tonnages and rates were more or less unchanged in week 30 on a worldwide basis. But there were some minor changes of a few percentage points from the world’s main origin regions, compared with the previous week. For example, outbound tonnages from Europe origins rose by +3%, WoW, but there was a -3% drop from Middle East & South Asia (MESA) and a -2% decline from North America origins, WoW, in terms of chargeable weight flown.
Based on a full-market average of contract rates and spot rates, rates worldwide rose by just +1%, WoW, in week 30, to an average of US$2.45 per kilo, more or less exactly their level in the equivalent week last year. Spot rates were also relatively stable, rising by an average of +1%, WoW, to $2.66 per kilo on a worldwide basis, although they are down, YoY, by -1%. Spot rates from Africa recorded the biggest WoW change, dropping by -11%, although that followed a +13% WoW spike the previous week.
Tonnages up +5% on last year
Worldwide chargeable weight in week 30 was +5% higher than the equivalent week last year, with all of the main origin regions posting increases, including a +7% year-on-year (YoY) rise from Asia Pacific, a +5% increase from Central & South America, and a +3% rise from Europe origins. Overall worldwide pricing is similar to last year, just +1% higher, with the big difference being a -11% average decrease from MESA origins from their elevated level last year, and a -20% drop in spot rates from that region as a whole.
Source: WorldACD
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