Air cargo demand and rates stable after LNY peaks and troughs

Airfreight demand and rates have stabilised over the last couple of weeks following the highs and lows caused by the Lunar New Year holiday period and uncertainty around the impact of tariffs.

Air cargo analyst WorldACD said its latest figures showed a "flat trend" in rates and demand compared with recent weeks, while the two were a little higher than this time last year.

According to the WorldACD database, air cargo demand was flat week-on-week in the week running to March 9, while it was up 2% compared with a year ago.

The average worldwide average rate - spot and contract - for the week stood at $2.33 per kg, compared with $2.31 per kg a week earlier and $2.23 last year.

The data provider said that chargeable weight flown from Asia Pacific origins regained a further 5% week on week "taking them back up close to their levels in mid-January, just before the peaks and troughs of the Lunar New Year (LNY) period".

"Those increases in tonnages from Asia Pacific origins were balanced out by [week on week] falls in volumes from Central & South America (-9%), Europe (-3%), North America (-2%), Middle East & South Asia (MESA, -1%), and Africa (-1%)."

Looking more closely at rates, WorldACD said that spot rates in week 10 stood at $2.55 per kg, which is stable compared with week nine but 8% up on last year.

Spot rates out of Asia Pacific origins fell 1% on a week earlier but are up 11% year on year.

"Examining Asia Pacific more closely reveals that average spot rates from China and Hong Kong, combined, to the US remained stable, week on week at $3.78 per kg as tonnages continued to build back in week 10 close to their level in mid to late January," WorldACD said.

"Meanwhile, tonnages from Asia Pacific origins to Europe recorded a further 4% week-on-week rebound in week 10, thanks to significant increases from most of the region’s main markets, including China (5%), Hong Kong (6%), Japan (7%), Taiwan (7%), Vietnam (3%), Thailand (9%), and Singapore (9%)."

Despite the improved demand, spot rates from Asia Pacific to Europe in week 10 declined 3% week on week to $3.91 per kg but "remain significantly higher" (20%) than last year "thanks to increases from China (14%), Hong Kong (22%), Japan (19%) and Thailand (38%)".