With the arrival of peak season, spot rates are rising
As the peak season of the fourth quarter continues, global spot exchange rates have risen, especially in the Asia Pacific region, with a year-on-year increase of 25%.
WorldACD data shows that compared to the first week of November last year, various markets were already experiencing strong demand during the peak season, and spot prices continued to rise significantly year-on-year.
MESA's spot rates have also increased by 70% year-on-year, Europe by 14%, CSA by 14%, Africa by 10%, and North America by 5%.
WorldACD found that, based on the week on week (WoW) development, the average spot freight rate for global air cargo continued to rise in the first week of November, driven by significant month on month growth in the Asia Pacific region and other originating regions.
According to the latest weekly data and analysis from WorldACD, the global average spot exchange rate further increased by 5% month on month in the 45th week (November 4-10), which is 24% higher than the same period last year.
The spot price in the Asia Pacific region, the world's largest origin, further increased by 6% month on month to $4.43 per kilogram, while the spot price in Europe, the second largest origin, also increased by 6% month on month to $2.49 per kilogram. WorldACD's data covers over 450000 transactions per week.
The price increase in Central and South America (CSA) is even greater, reaching 10% to $2.04 per kilogram, while the price in North America has increased by 5% to $1.83 per kilogram.
The spot exchange rates in Africa (-4%) and the Middle East and South Asia (MESA, -2%) have decreased month on month.
TAC index editor Neil Wilson recently stated that although demand growth did not reach the high levels many expected, air freight prices remained firm in October.
Although there are still doubts about how high the spot freight rates in the Asia Pacific region may reach, Xeneta has recently reflected that although the peak in the fourth quarter usually leads to a surge in spot freight rates, the air cargo market has matured enough this year to enable airlines and freight forwarders to maintain reasonable prices.