Worldwide air cargo markets show a flat trend looking at the latest demand and pricing levels, slightly above those this time last year, according to WorldACD, amid a fast-evolving geopolitical and trade environment.

Based on the more than 500,000 weekly transactions covered by WorldACD's data, total worldwide tonnages in week 10 (March 3 to 9) were stable, compared with the previous week, and 2% higher year on year (YoY).

Chargeable weight flown from Asia Pacific origins regained a further 5%, week on week (WoW), returning to levels close to those in mid-January, just before the peaks and troughs of the Lunar New Year (LNY) period.

The air cargo market data provider noted that increases in tonnages from Asia Pacific origins were balanced out by falls in volumes from Central and South America, Europe, North America, the Middle East and South Asia (MESA), and Africa.

Spot rates stable

WorldACD said average worldwide spot rates in week 10 of US$2.55 per kilo were also stable, WoW, despite a 1% drop from Asia Pacific origins. But compared with week 10 last year, they are  % higher, with Asia Pacific spot prices up 11% YoY.

 [Source: WorldACD]

"Examining Asia Pacific more closely reveals that average spot rates from China and Hong Kong, combined, to the U.S. remained stable, WoW, at US$3.78 per kilo, as tonnages continued to build back in week 10 close to their level in mid to late January," the air cargo market provider said.

It added that tonnages from Asia Pacific origins to Europe recorded a further 4% WoW rebound in week 10, thanks to significant increases from most of the region's main markets, including China, Hong Kong, Japan, Taiwan, Vietnam, Thailand, and Singapore.

Tonnages dropped sharply from South Korea in week 10, consistent with reductions in freighter capacity from South Korea that week.

WorldACD noted that average spot prices from Asia Pacific to Europe in week 10 edged further downwards, WoW, to US$3.91 per kilo (down 3%), thanks to declines from China, Hong Kong, and Vietnam.

"But year on year, average spot rates from Asia Pacific to Europe remain significantly higher (up 20%), thanks to increases from China (14%), Hong Kong (22%), Japan (19%), and Thailand (38%)," the latest WorldACD analysis said.