Air cargo spot rates rise 5% as peak season nears

Global air cargo spot rates kept rising in the second half of October even as volumes dipped, WorldACD Market Data said. Week 43 spot rates rose 5% from the week before, following a 4% rise in week 42. Europe led with a 7% gain, followed by Asia Pacific at 6% and Central and South America at 5%.

The average worldwide spot rate is now $3.80 per kilo. Full-market rates, which mix spot and contract prices, rose 3% to $3.33 per kilo, up 31% from a year earlier.

Worldwide tonnages fell 2% week on week but were 2% higher than a year ago. Capacity slipped 1% week on week and was 1% higher year on year, mainly due to more freighter services. A typhoon that disrupted flights in Taiwan cut Asia Pacific capacity by 1%.

Capacity from the Middle East and South Asia was 13% below its level in late February, just before the start of the US-Israel war against Iran, WorldACD said. Capacity from the Arabian Gulf was down 19%. Riyadh was almost completely closed to international flights in week 43.

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