Worldwide average air cargo rates have remained firm in the last two weeks and remain almost 20% higher than last year, amid the gradual recovery of global air cargo capacity, according to the latest figures from WorldACD Market Data.

From June 27  to July 3, the air cargo market data provider said worldwide chargeable weight decreased by 2% compared with the week before, and the average worldwide rate decreased slightly, based on the more than 350,000 weekly transactions covered by WorldACD data of the world's main air cargo lanes.

"Comparing the last two weeks with the preceding two weeks (2Wo2W), average worldwide rates increased by 1%, and chargeable weight dropped by 1%, while there was an increase in the overall capacity of 1% compared with the preceding two weeks," WorldACD said.

It added that rates from North America to Europe and Europe to Africa rose strongly in the last two weeks, up 5%.

Compared with last year, the report noted that the last two weeks showed a worldwide rate increase of 19% and a weight decline of 8%, at a capacity increase of 11%.

WorldACD noted that on the biggest head-haul trades from East Asia, the Asia Pacific to Europe average rates rose 3% in the last two weeks compared with the preceding two weeks, while chargeable weight rose 2%.

In contrast, it added that rates from the Asia Pacific to North America dropped by 2% despite a 4% rise in chargeable weight.

"On the demand side, the most significant two-week shift was a 9% increase in chargeable weight from the Middle East & South Asia to the Asia Pacific. But the Middle East & South Asian outbound average rates recorded the most significant decline of any major region at 4% in the last two weeks compared with the previous two," it added.

Rates still up 20% year-on-year

For the other major origin regions, average 2Wo2W rates rose or fell between 1% or 2%, with Africa and North America seeing rate rises of 2%, Asia Pacific 1%, while average rates from Europe and Central & South America slipped 1% each, according to the WorldACD report.

It added that although average rates on a worldwide basis remain broadly stable, up 1% in the last two weeks compared with the previous two, they remain nearly 20% higher than this time last year, despite an 11% recovery in capacity.

WorldACD said average yields from North America are up by 25%, year on year, despite a 9% drop in chargeable weight and an 18% capacity increase. Similarly, prices from Europe are 12% higher despite a 4% drop in demand and a 21% rise in capacity.
 

And for the one major region that has seen significant declines in capacity this year, WorldACD noted that average rates from the Asia Pacific last week were up 28%, year on year, despite a 12% decline in chargeable weight, whereas capacity was around 10% below its level this time last year.