Airfreight rates stay strong despite Golden Week demand drop
14 / 10 / 2024
Source: Supakitswn/ shutterstock.com
Airfreight spot rates on global basis edged up in the first week of October to their highest level of the year despite volumes out of Asia declining due to the Golden Week holiday, according to WorldACD.
Statistics from the data analyst show that airfreight spot rates increased by 1% week on week in the week ending October 6 (week 40) to $2.84 per kg even though volumes fell by 5% on a week earlier.
The largest drop off in demand came out of the Asia Pacific region as the Golden Week holiday was celebrated and factories from across the region were closed.
Demand out of the region was down 7% week on week, WorldACD said, although there was also weakness out of Europe and Middle East/South Asia (MESA).
“A 14% week-on-week fall in intra-Asia Pacific traffic was the biggest factor in the 7% week-on-week drop in Asia Pacific origin tonnages, responsible for more than for two-thirds (68%, or five percentage points) of that decline.
“And within that intra-Asia Pacific decline in traffic, intra-Asia tonnages ex-China were down by 21% week on week.
“The Asia Pacific week-on-week decrease also explains the majority (56%) of the global decrease in tonnages, with the remainder primarily explained by Europe origins (18% share of the global week-on-week drop) and MESA (15% share of the global week on week drop).”
Flights in the MESA region were affected by the conflict in the Middle East last week. However, demand remains 8% ahead of last year due to a rise in air demand created by shipping diversions around the Red Sea to avoid missile attacks.
Meanwhile, the increase in rates came from a 1% increase from Asia Pacific, 2% from Africa and 5% from Central & South America.
When contract rates are taken into account, average global airfreight rates were up 2% week on week to $2.65 per kg.