Spot rates rise as peak season builds
15 / 11 / 2024
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Spot rates are elevated globally and are up 25% year on year (YoY) out of Asia Pacific in particular, as the fourth quarter peak season continues.
Comparing the first week of November with the first week of November last year, when various markets were already experiencing the effects of strong peak-season demand, spot prices remain “significantly elevated YoY”, according to WorldACD data.
YoY spot rates are also up 70% for MESA, 14% for Europe, 14% for CSA, 10% for Africa and 5% for North America.
Looking at week-on-week (WoW) developments, worldwide air cargo average spot rates continued to rise in the first full week of November, driven by significant WoW increases from Asia-Pacific and other origin regions, found WorldACD.
According to the latest weekly figures and analysis from WorldACD, average global spot rates recorded a further 5% WoW rise in week 45 (4 to 10 November), taking them 24% above their equivalent levels this time last year.
Spot prices from the biggest worldwide origin region, Asia-Pacific, rose by a further 6% WoW to $4.43 per kilo, with the second-largest origin region, Europe, showing also a 6% WoW increase to $2.49 per kilo, based on the more than 450,000 weekly transactions covered by WorldACD’s data.
Rates from Central & South America (CSA) rose even more steeply, by 10%, to $2.04 per kilo, with prices from North America recording a 5% increase, to $1.83 per kilo.
There were WoW falls in spot rates from Africa (-4%) and Middle East & South Asia (MESA, -2%).
TAC Index editor Neil Wilson recently remarked that airfreight rates remained firm in October despite demand growth not reaching the highs many had expected.
While there is a question mark over how high spot rates from Asia Pacific may go, Xeneta also recently reflected that while the fourth quarter peak typically results in rocketing spot rates, this year the air cargo market has matured enough to enable airlines and forwarders to keep rates reasonable.
