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Rates and tonnages stabilized in the second week of October, but the overall trend in the last five weeks is negative with no signs yet of a significant Q4 peak season
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Tonnages from the main global origin regions in weeks 40 and 41contracted, with double-digit drops of 13% from Asia Pacific and 11% from Middle East & South Asia
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Capacity from all of the main origin regions increased, with Europe up 17%, Africa growing 15%, and North America expanding 10%, while Asia Pacific shrank 10% and Central & South America slipped 3%
Air cargo rates and tonnages stabilized, week on week, in the second week of October, but the overall trend for the last five weeks is clearly negative with no signs of a significant fourth-quarter peak season, WorldACD Market Data reveals.
On Week 41 (October 10-16) alone, worldwide chargeable weight remained stable compared with the previous week, based on the more than 350,000 weekly transactions covered by WorldACD’s data.
Comparing weeks 40 and 41 with the preceding two weeks, however, tonnages declined 8%, while average worldwide rates eased 5% in an almost flat capacity environment (-1%).
Across that two-week period, tonnages from all the main global origin regions decreased, with double-digit drops ex-Asia Pacific (-13%) and ex-Middle East & South Asia (-11%). (See related story. https://www.portcalls.com/april-global-air-cargo-demand-shrinks/)
Notable declines were seen outbound from Europe (-6%) and North America (-4%). On a lane-by-lane basis, tonnages from Asia Pacific to all regions (including intra-Asia Pacific) were substantially down, partially impacted by China’s Golden Week in the first week of October.
Average rates also down from this key export region – including an 11% rate decline from Asia Pacific to North America, compared with the previous two weeks.
Significant tonnage decreases were also recorded from Middle East & South Asia to Asia Pacific and to Europe (-14%), from Europe to Asia Pacific (-11%) and to Central & South America (-10%), and from North America to Europe (-8%), on a two-week over two-week basis.
Comparing the overall global market with this time last year, chargeable weight in weeks 40 and 41 was down 16% compared with the same period last year, despite a 6% capacity increase.
Notably, volumes originating in Asia Pacific are 26% below their strong levels this time last year, and Middle East & South Asia origin tonnages are 24% below last year.
Capacity from all of the main origin regions is significantly above levels this time last year, with increases of 17% from Europe, 15% from Africa and 10% from North America, while that from Asia Pacific has shrunk 10%, and Central & South America has contracted 3%.
Worldwide rates are currently 17% below their level this time last year at an average of US$3.27 per kilo.
