While rates out of Asia have been flatter than expected in recent weeks, prices on the transatlantic trade lane have taken off as passenger airlines have been reducing belly capacity in line with the quieter winter season and Guarulhos International Airport (GRU) has been hit with congestion.
According to WorldACD, westbound spot prices from Europe to the US have increased by 16% and 17% over the past two weeks to reach $3.34 per kg, reflecting a fall in capacity following the start of airlines’ winter schedules on October 27.
The data firm added that there was also a demand increase ahead of the Thanksgiving holiday on November 28. Meanwhile, “cargo load factors on the westbound transatlantic market were already relatively high”.
WorldACD added that spot rates from Europe to South America had increased by 36% over the past two weeks to $4.32 per kg, driven by price increases to GRU where a five-day embargo was implemented on November 11 to combat congestion.
Prices from Europe to Brazil reached $6.58 per kg in week 46, which equates to a 57% rise compared with two weeks earlier.
Meanwhile, rates out of Asia Pacific remain strong but flat, the data provider said.
“Although markets remain relatively strong, including ex-Asia Pacific, good advance planning by air cargo stakeholders looks set to avert a major peak season capacity crunch and very steep rate rises from Asia Pacific markets,” explained the company in its weekly market wrap-up.
It added: “Nevertheless, spot prices to Europe from China, Hong Kong, and South Korea all recorded week-on-week rises in week 46, of 11%, 5%, and 4%, respectively, to $4.98, $5.93, and $4.93 per kg. But spot rates from Asia Pacific to the US dipped by 4%, week on week, including a 2% drop from China.”