Soaring air cargo spot rates from Bangladesh and Japan and a surge in tonnages from Dubai have further boosted an already buoyant air cargo market in the first half of September, according to the latest weekly figures and analysis from WorldACD Market Data.

Worldwide air cargo tonnages flown increased by 4% in week 37 (September 9-15), week on week (WoW), driven by a 5% increase from Asia Pacific origins, a 6% increase from Central & South America (CSA), and a rebound of 10% from North America origins, linked to Labor Day on September 2. 

WorldACD said average worldwide rates edged up slightly further to US$2.58 per kilo, based on a full-market average of spot rates and contract rates, with a 1% further increase from Asia Pacific origins partially cancelled out by a 2% drop from the Middle East & South Asia (MESA) origins.

Nevertheless, average worldwide rates from those two regions are up year-on-year (YoY) by 24% and 53%, respectively, helping drive average worldwide prices 14% higher YoY.

This is also more than 50% above pre-Covid levels (September 2019).

That overall worldwide increase comes despite YoY falls in average rates from North America (-8%), Europe (-8%), CSA (-3%) and Africa (-2%).

 [Source: WorldACD]

WorldACD said the increases in tonnages in week 37 are broadly in line with last year's pattern and most likely represent an early indication of the market strengthening in the lead-up to what is expected to be a strong fourth-quarter peak season.

Notable differences this year include the ongoing exceptionally strong demand and high rates from MESA origins.

Spot rates climb from Bangladesh and Japan to the US

Other particularly noteworthy recent developments within MESA include a major surge in tonnages from Dubai to the US, increasing by around 50% in the last four weeks, taking tonnages to more than three times their level last year (up 275% in week 37).

Meanwhile, spot rates to the US from China and Hong Kong have been relatively stable in recent weeks at between US$5 and US$5.50 per kilo, up around 25% year over year.

But from other origins in Asia Pacific, including Japan and Southeast Asia, WorldACD said spot rates have risen significantly in recent weeks.

Average spot rates to the US from Thailand (US$6.79), Singapore (US$6.76), and Malaysia (US$6.60) are at or close to their highest levels this year and close to double their levels this time last year.

"And from Japan, where air services have been disrupted in recent weeks by typhoons, spot rates to the US soared above US$8 per kilo (US$8.33) in week 37, their highest level this year," the analysis said. WorldACD said this is an increase of around 50% compared with their average levels three months ago, in mid-June.