Air Freight Spot Rates Rise 3% in Early December, China-US Route Hits New Peak

Early December data from WorldACD shows global spot rates rose to $3.01/kg, led by African markets and a strong recovery on the China-US route, despite this year's peak season being less volatile than usual.

air-cargo---TransAirfreight

Source: Trans Airfreight

Latest data from WorldACD indicates that air freight spot market pricing recorded growth in the first week of December. However, this year's peak season is assessed as having fewer spikes compared to recent years.

According to figures from the data provider, international spot rates in the first week of December (week 49) rose 3% compared to the last week of November, reaching an average of $3.01/kg, a development consistent with expectations during the year-end peak period.

Analyzing regional growth drivers, WorldACD noted: "The increase was ”led by an 11% week-on-week rise from Africa origins, a 6% increase from Europe, and a 4% increase from Asia Pacific origins."

However, the market picture is not entirely uniform. On the flip side: "On the other hand, spot prices from Central & South America (CSA) dropped by 7% week on week, mainly because of the end of the cherry air export season from Chile, from where cherry exports – mainly to China – had driven up rates in recent weeks."

China-US Route Sees Strong Recovery

Delving into rate performance from the Asia-Pacific region, rates from China to the US continued their recovery momentum in week 49 following a volatile year due to White House tariff policies. Rates between China and the US rose 8% compared to the previous week, hitting a year-to-date high of $6.82/kg, slightly above last year's level.

WorldACD observed regarding the broader market: "For the wider Asia Pacific to the US market, spot rates in week 49 increased by an average of 6%, week on week to $6.32 per kg, mainly driven by those rate rises from China and a big spike in spot rates from Japan (26%)."

Despite rising rates, transport volumes between Asia-Pacific and the US remained flat compared to the previous week, although performance varied by country. Volumes to the US from China, Hong Kong, Japan, and South Korea "rose well compared to the previous week's levels," but volumes from Thailand and Malaysia "dropped significantly."

Asia-Europe Market and Volume Fluctuations

The Asia-Pacific to Europe market saw average spot rates rise 5% week-on-week to $4.65/kg, mainly due to increases from Japan and Southeast Asian countries like Thailand, Malaysia, and Singapore.

Regarding volumes on this route: “Volumes were slightly up [week on week] for Asia Pacific to Europe (1%) with mainly Japan, South Korea, Vietnam and Malaysia volumes up, and tonnages ex-Thailand down.”

Looking at the overall global picture, the data provider added: "On a worldwide basis, tonnages edged up slightly (1%) from week 48 to week 49 – despite a small drop (1%) in volumes from Asia Pacific origins which, as usual, have been the biggest driver of the end-of-year ramp-up of demand and pricing, even if this year’s ‘peak season’ has been less spiky than some."

The slight increase in global volume in week 49 was almost entirely driven by a recovery in US volumes following the Thanksgiving holiday the previous week.

Year-on-Year Comparison

Current transport volumes are also tracking higher than the same period last year. WorldACD noted: "It is important to note that global tonnages are around 5% higher than this time last year, with big year-on-year growth from Asia Pacific (+9%), CSA (+8%), Middle East & South Asia (MESA, +6%) and North America (+4%) origins."

However, while demand is up compared to a year ago, spot rates are moving in the opposite direction.

"Compared with last year, worldwide spot rates are down by an average of 6%, year on year, with significant declines from all the main origin regions apart from Africa."