A sharp rise in spot rates for air freight from European origin, especially to the Americas, helped drive average spot rates around the world in the second full week of November, with rates to Brazil rising particularly quickly in the last two weeks, linked to… Congestion at Sao Paulo’s Guarulhos International Airport (GRU).
According to the latest weekly figures and analysis by WorldACD Market Data, average spot prices from European origin rose +10 percent in week 46 (November 11-17), week over week, to US$2.71 per kilo. This is 23 percent higher than this time last year. Average spot prices excluding Asia Pacific were flat in week 46 compared to the previous week at US$4.39 per kilo, although a +3 percent increase in tonnage excluding Asia Pacific also contributed to a +4 percent increase The average worldwide spot prices are US$3.14 per kilo. There have been modest increases in WoW’s spot rate
A thriving transatlantic market
However, the biggest shifts in the past few weeks have been in the westbound transatlantic market, especially from Europe to the USA and South America. Spot interest rates from Europe to the United States have recorded successive increases over 16 years percent And +17 percent In weeks 45 and 46, the price per kilo reaches $3.34 – an increase of +$48 percent At five weeks and +36 percent In just two weeks. This reflects a reduction in capacity following the start of airlines’ winter schedules from October 27, and some increases in demand ahead of the Thanksgiving holiday on November 28, but also the fact that cargo load factors in the westbound transatlantic market were already relatively high.
Meanwhile, average spot prices from Europe to South America jumped from US$4.32 per kilo in week 44 to US$5.88 in week 46 – an increase of +36 percent. The biggest increases to date were in Brazil, where high levels of congestion at the GRU, and even a 5-day shipping ban until 11 November, caused spot prices from Europe to Brazil to rise from $4.19 per kilo in the 44th week to $6.58 per week. Week 46 – High +57 percent.
Asia Pacific markets are strong but stable
Although markets remain relatively strong, including previously in the Asia-Pacific region, good advance planning by air cargo stakeholders appears likely to avoid a major peak season capacity crunch and a very sharp rise in prices from Asia Pacific markets. However, spot rates to Europe from China, Hong Kong and South Korea posted a stunning 46 week rise of +11 percent+5 percentAnd +4 percentrespectively to US$4.98, US$5.93 and US$4.93 per kilo. But spot rates from the Asia-Pacific region to the United States fell by -4 percent percentF, including -2 percent Drop from China.
Based on more than 450,000 weekly transactions covered by WorldACD data, average worldwide spot rates are +25 percent Higher than last year’s levels (on an annual basis), with the Middle East and South Asia region continuing to rise (+73 percent), spot prices excluding Asia-Pacific rose +22 percent.
Based on average spot market and contract prices, overall global prices increased by +2 percentF, and +11 percent Higher, annually.
