Air cargo spot rates from Bangladesh to Europe have risen to their highest level this year amidst political unrest in the country that has resulted in disruption to air cargo operations.
Data from WorldACD shows that in the week from Monday July 29 to Sunday August 4 (week 31), spot rates were $4.87 a kilo.
This follows on from "the already extremely elevated levels seen throughout 2024, as the disruptions to air services and customs clearance services in the country added to an already-constrained capacity market", said data publishing company WorldACD in a market update on August 8.
"That figure of $4.87 a kilo is almost three times (+173%) the equivalent week last year," added WorldACD.
The challenges for the air cargo market in Bangladesh were highlighted earlier this week when a freight forwarder source told Air Cargo News that there were cargo handling delays and higher rates following weeks of protests against the government and deadly clashes between police and demonstrators.
In contrast with the rates spike, air cargo tonnages have recovered according to WorldACD, indicating resilience in the market.
"For example, after plunging the previous two weeks (weeks 28-29), tonnages from Bangladesh to Europe recovered in week 31 to the levels seen in weeks 25-28," said the company.
"These tonnage levels in recent weeks are still well below the levels flown in the equivalent weeks last year, although those comparison months last year were particularly strong months for Bangladesh-Europe tonnages."
Meanwhile, WorldACD said average worldwide air cargo rates and tonnages in July were up by 12%, year on year, driven by continuing strong demand from sectors such as e-commerce and persistent disruptions to supply chains in various parts of the world.
