Worldwide air cargo rates held firm in the second full week of July, despite a second consecutive week-on-week (WoW) small drop in overall global flown tonnages, with volumes from Asia Pacific origins to the US recording further declines.

According to the latest weekly figures and analysis from WorldACD Market Data, global average spot rates edged up slightly (1%) in week 28 (July 7 to 13) to US$2.65 per kilo, largely due to a 6% WoW rebound in both pricing and tonnages from North America origins following US Independence Day on July 4.

This followed an 11% decline in tonnages from North American origins the previous week.

Asia Pacific to US tonnages fall further

WorldACD noted that the most noteworthy development in week 28 was the second consecutive week of falling tonnages from Asia Pacific origins to the US, where volumes dropped by another 5%, WoW, after a 2% decrease reported last week.

The decline in week 28 was again mainly driven by Southeast Asia origins, including double-digit percentage declines, WoW, from Indonesia (23%), Thailand (21%), Vietnam (14%), and Singapore (10%).

All had already recorded WoW declines in week 27, except for Thailand, which had recorded a 2% WoW rise in week 27.

 [Source: WorldACD]

However, there were some modest WoW increases in flown tonnages to the US from certain other key Asia Pacific origins, with volumes rebounding from Japan (6%), Hong Kong (3%), and a further small rise from South Korea (1%).

The analysis noted that Taiwan and China, however, were both down by 3% WoW. 

The air cargo market data provider noted that Middle East & South Asia (MESA) markets are under pressure.

"Another region that is seeing some significant change is MESA," WorldACD said.

"Against the complex background of a continuing recovery from Eid, renewed regional conflicts and flare-ups, a revival of attacks by Houthis on ships in the Red Sea, and some specific logistics challenges in parts of the Indian subcontinent, flown chargeable weight from MESA origins dropped by 3%, WoW, in week 28, with full-market average rates down 3%, and spot rates down by 4%."

It added that although tonnages are more or less in line with their levels this time last year, average full-market rates and spot rates are down, YoY, by 12% and 18%, respectively, from their inflated levels in mid-July 2024. 

Tonnages flown from Bangladesh — where cargo stakeholders have reported some difficulties with a newly introduced customs system — were down by 4%, WoW, including an 8% drop to its biggest destination market, Europe, and a 22% fall to Asia-Pacific markets.

But to the US, where Bangladeshi exporters look set to face 35% tariffs from August 1, tonnages continued to rebound from their Eid-related lows last month, and their Independence Day lull previous week, rising a further 4%, WoW.

Meanwhile, there were WoW declines in flown tonnages in week 28 from other key MESA origin countries including India (6%) and Sri Lanka (5%) to global markets, WorldACD said.