Average global air cargo rates have stabilized in the last five weeks at around -37% below their levels this time last year, while the decreasing trend in global tonnages continued into the first full week of August, with volumes around -4% year-on-year, according to the latest figures from WorldACD Market Data.

Despite the decline, the air cargo market data provider said this is still more than +30% above their comparable pre-Covid levels.

In its latest report, WorldACD noted that figures for week 32 (August 7 to 13) showed a -2% drop in tonnages compared with the previous week, while average worldwide air cargo prices remained flat, week-on-week (WoW), based on the more than 400,000 weekly transactions it covered.

"Comparing weeks 31 and 32 with the preceding two weeks (2Wo2W), overall tonnages dropped by -2% versus their combined total in weeks 29 and 30, while worldwide rates were stable and capacity was slightly down (-1%)," it said.

At a regional level, WorldACD noted that "significant decreases" in tonnages were recorded (2Wo2W) on flows ex-North America to all main regions, notably to Asia Pacific (-9%), Central & South America (-6%) and Europe (-4%).

Volumes also dropped in both directions between Europe and Central & South America (-9% northbound, -5% southbound) and between Europe and Africa (northbound -4%, southbound -8%), while tonnages on the key Asia Pacific to Europe lane also fell significantly (-5%).

Meanwhile, there was only one notable increase recorded in inflows ex-Middle-East & South Asia to Asia Pacific (+5%).

On the pricing side, the report noted that average global rates remained stable (2Wo2W), along with prices from the main origin regions. But there were some noteworthy shifts in pricing on certain lanes to, from and within Asia, with rates decreasing on flows ex-Middle East to Asia Pacific (-6%) and intra-Asia Pacific (-4%) but rising (+4%) on the big Asia Pacific to North America lane.

Volumes, rates down year-on-year

Comparing the overall global market with this time last year, chargeable weight in weeks 31 and 32 were down -4% compared with the equivalent period last year (YoY), with strong decreases in tonnages ex-North America (-17%) and ex-Europe (-9%).

WorldACD said increases were observed from three main regions, most notably ex-Middle East & South Asia (+4%).
 
Overall capacity has increased by +9% compared with last year, with capacity ex-Asia Pacific up by a noteworthy +27%.

Other significant YoY capacity increases can be observed ex-Middle East & South Asia (+11%), ex-Europe (+8%) and ex-Africa (+6%), while a decrease was recorded ex-Central & South America (-5%).
 
"Worldwide average rates are currently -36% below their levels this time last year, at an average of US$2.27 per kilo in week 32, although they remain significantly above pre-Covid levels (+33% compared to August 2019)," WorldACD added.