Air cargo spot rates rise 5% as peak season approaches

Global air cargo spot rates rose 5% week on week in week 43, from 19 to 25 October, to $3.80 per kilogram, up 38% from a year earlier despite a 2% decline in volumes, according to WorldACD data.

WorldACD said spot rates rose 4% in week 42 before adding 5% the following week, and that Europe led the increase with 7%, followed by Asia Pacific with 6% and Central and South America with 5%.

The full-market average, which blends spot and contract rates, reached $3.33 per kilogram, up 3% week on week and 31% year on year. Global volumes fell 2% week on week but rose 2% year on year, while capacity fell 1% week on week and rose 1% year on year.

Asia Pacific to the United States rates stood at $7.43 per kilogram, up 41% year on year, and Asia Pacific to Europe at $5.10. WorldACD said capacity from the Middle East and South Asia remains 13% below its level in late February, and Riyadh was nearly closed to international flights during the week.

What do these terms mean?

Air cargo: The transport of goods by aircraft, used for urgent, high-value or perishable goods.

Spot rate: The shipping price agreed for a specific shipment close to the transport date, as opposed to long-term contract rates.

Cargo capacity: The space available on aircraft to carry goods, measured by weight or volume, whose shortage pushes prices higher.