Global Air Cargo Demand Drops in July While Rates Remain Firm

Global air cargo demand dropped by around -5% in the first week of July, mainly due to the impact of US Independence Day holidays, but average worldwide rates remain high thanks to continuing rises from Asia Pacific origins.

According to the latest weekly figures and analysis from WorldACD Market Data, the -5% drop in worldwide tonnages in the first week of July included a fall of -13% from North America origins, with the ‘Fourth of July’ celebrations also contributing to a -8% drop from Central & South America (CSA), and declines of -4% from Europe and -3% from Asia Pacific.

Worldwide tonnages were up, year on year (YoY), by +11% in week 27, roughly in line with the figure for June and for the second quarter of 2024 as a whole.

Rates rise continues

On the pricing side, average worldwide rates of US$2.57 per kilo in week 27, were up +2% compared with the previous week, based on a full-market average of spot rates and contract rates – driven chiefly by a +3% rise from Asia Pacific origins.

That figure of $2.57 per kilo is a rise of +14%, YoY, with prices also still up very significantly compared with pre-Covid levels (+48% compared to July 2019).

Further analysis of those pricing figures by WorldACD reveals that average spot rates from Asia Pacific to the US stood at $5.72 per kilo in week 27, up +68%, YoY.

Around half of Asia Pacific tonnages to the US originate from China and Hong Kong, where average spot rates in week 27 of $5.34 per kilo and $4.84 per kilo represented YoY increases of +38% and +12%, respectively.

But there have been some even higher prices and bigger increases in recent weeks from several other key Asia Pacific origins.

Read More: Air Cargo Spot Rates Hold Firm Thanks to Demand from Middle East and Asia