Air freight rates remain high despite falling demand during Golden Week

Source: Global Logistical Connections News

Global spot air freight rates rose slightly in the first week of October to their highest level of the year despite falling volumes from Asia due to the Golden Week holiday in China, according to WorldACD.

Statistics from the data analyst showed spot air freight rates rose 1% week-on-week in the week ending October 6 (week 40) to $2.84/kg despite volumes falling 5% from a week earlier.

WorldACD said the biggest drop in demand came from the Asia Pacific region as the Golden Week holiday took place and Chinese factories were closed.

Demand from the region fell 7% week-on-week, WorldACD said, although there was also a decline from Europe and the Middle East/South Asia (MESA).

“A 14% week-on-week fall in intra-Asia Pacific traffic was the biggest factor in the 7% week-on-week drop in Asia Pacific origin tonnages, responsible for more than for two-thirds (68%, or five percentage points) of that decline.”

“And within that intra-Asia Pacific decline in traffic, intra-Asia tonnages ex-China were down by 21% week on week.”

“The Asia Pacific week-on-week decrease also explains the majority (56%) of the global decrease in tonnages, with the remainder primarily explained by Europe origins (18% share of the global week-on-week drop) and MESA (15% share of the global week on week drop).”

Flights in the MESA region were affected by the conflict in the Middle East last week. However, demand was still 8% higher than last year due to increased air cargo demand as ships were diverted around the Red Sea to avoid missile attacks.

Meanwhile, the freight rate increase was driven by a 1% increase from Asia Pacific, 2% from Africa and 5% from Central & South America.
Including contract rates, the global average air freight rate increased 2% from the previous week to $2.65/kg.

Source: WorldACD
 

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Source: Phaata.com (via AirCargoNews)

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