July 13, 2024

Air Cargo Rates Surge in Middle East and Asia Amid Strong Demand

Global air cargo rates remain robust, driven by strong demand in the Middle East and Asia. The MESA region leads with a 52% rate increase and a 13% rise in tonnages.

Cargo on Asia

Photo Source: Linkedin

Global air cargo rates are maintaining their strength due to high demand and elevated spot rates in the Asia and Middle East markets. According to recent data, despite a 2% decline in worldwide tonnages in week 24 of 2024, average rates held steady at $2.51/kg. This reflects an 8% annual increase and a significant 42% rise above pre-pandemic levels. Over the past two weeks, both rates and tonnages have seen a 1% uptick compared to the previous fortnight.

The Middle East & South Asia (MESA) region is at the forefront of this growth, with a notable 52% increase in rates and a 13% rise in tonnages. The Asia Pacific region also demonstrated substantial growth, with rates up by 17% and tonnages by 16%.

In addition to the overall increase in global air cargo rates, there has been a significant rise in average spot prices from the Asia Pacific region to the USA over the past five weeks. Spot prices reached $4.80 in week 19 and climbed by 11% to $5.34 in week 24. In China, spot rates increased by 7% to $5.25 over the same period, resulting in annual increases of 52% and 38% for these regions, respectively.

Cargo-7
Photo Source: www.internationalairportreview.com

The report also highlights mixed performance in air cargo between various regions in Asia and the U.S. Specifically, tonnages from China to LAX airport have declined in the past month compared to the overall China-USA market and the wider Asia Pacific-USA market. Despite this decline, spot rates for China-USA and Asia Pacific-USA routes have continued to rise, showing annual increases of 38% and 30%, respectively.

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