Air cargo rates from Middle East & South Asia (MESA) continued to surge throughout May with spot rates from MESA origins to Europe averaging more than twice their level in May last year, according to the latest weekly figures and analysis from WorldACD Market Data.
“Tonnages and rates from Asia Pacific origins were also well above last year’s levels,” the update added.
Amid continuing strong demand and disruptions to ocean freight services caused by the attacks on container shipping, average air cargo rates in May of $2.78 per kilo from MESA to worldwide destinations were up 47 percent year on year (YoY) with tonnages 17 percent higher, based on more than 450,000 weekly transactions covered by WorldACD’s data.
“And from MESA origins to Europe, May’s average spot rate of around $3.35 per kilo was more than double the level in May last year with the average spot rate in week 22 (May 27 to 2 June 2) up by 128 percent YoY.”
India another bright spot
The average rates are being boosted by highly elevated spot prices from India to Europe ($3.78 per kilo, +160 percent) and Bangladesh to Europe ($4.38, +189 percent). Spot rates from Sri Lanka and Dubai have also been on an upwards trajectory for most of this year, almost twice last year’s equivalent levels, the update added.
“Asia Pacific origins recorded a 21 percent rise in tonnages in May YoY – their highest YoY growth since January – while rates from Asia Pacific origins recorded their first significant YoY full-month rise this year, up by almost 12 percent.”
Global story
Despite falling rates from other regions, the strength in Asia Pacific and MESA origin traffic helped keep overall average global rates steady in week 22 at a worldwide average of $2.51 a kilo, up around one percent week on week (WoW) and up around seven percent YoY.
Tonnages in weeks 21 and 22 were flat on a global basis compared with the previous two weeks (2Wo2W) with increases from Asia Pacific, Europe and MESA, the update added.
