Air Cargo Rates Bounce Back to +50% Above Pre-Covid Levels

Global average air cargo rates now stand +50% above their pre-Covid levels this time four years ago following the significant rebound in the last few months in demand and pricing, especially ex-China, according to the latest figures from WorldACD Market Data.

Preliminary figures for week 50 (11 to 17 December) indicate that global tonnages and average worldwide rates have been stable compared with the previous week, after recovering more quickly than last year from the seasonal post-Thanksgiving dip last month.

Comparing weeks 49 and 50 this year with the preceding two weeks (2Wo2W), overall tonnages increased +1%, and overall global average rates continued to rise, by +2%, with capacity up +1%.

The figures indicate that demand and pricing are levelling off, as they usually do in the second half of December, after rallying in the last three months.

The main driver for the recent increases has been a surge in tonnages and rates ex-Asia Pacific, especially China.

Taking a year-on-year perspective (YoY), total global tonnages in weeks 49 and 50 have continued to strengthen against their levels this time last year, now standing +5% higher than in the equivalent period 12 months ago – driven by a +16% YoY increase ex-Asia Pacific and a +10% rise ex-Middle East & South Asia.

Meanwhile, overall available capacity has increased by +11% compared with last year, with capacity ex-Asia Pacific up by a noteworthy +25%. 

Capacity ex-Middle East & South Asia saw a +8% bounce-back, YoY.

Read More: Peak Season Air Cargo Tonnages Up 3% on Last Year