Air cargo spot rates soar in October despite global tonnage dip

Worldwide air cargo spot rates have continued their upward trajectory moving into the second half of October. This surge comes despite a slight dip in global tonnages, as the pressure on available capacity intensifies during the traditionally demanding fourth-quarter peak period. Ongoing geopolitical constraints and elevated fuel surcharges are further contributing to this robust pricing environment.

According to the latest weekly figures released by WorldACD Market Data, global spot prices in week 43 (spanning 19 to 25 October) increased by an average of 5%, week on week. This mirrors a similar pattern observed during the equivalent week last year. The recent climb was primarily driven by a 7% rise from Europe, a 6% week-on-week increase from the Asia Pacific region, and a 5% rise originating from Central and South America. These increases follow a 4% week-on-week rise in global spot rates during week 42, propelling average worldwide spot rates to $3.80 per kilo. This figure represents a staggering 38% increase year on year. Furthermore, worldwide full-market rates, which comprise a mixture of spot prices and long-term contract rates, rose by 3% week on week to $3.33 per kilo, reflecting a 31% year-on-year increase.

Conversely, worldwide tonnages experienced a 2% week-on-week drop. Most major global regions saw marginal declines of 1% or 2%, with the notable exception of the Middle East and South Asia (MESA). The MESA region recorded a more significant 6% week-on-week drop in cargo volumes, a downturn attributed chiefly to declines from India and Sri Lanka connected to national holidays. Despite this weekly drop, global volumes in week 43 remained 2% higher than those recorded during the same period last year.

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