Air cargo tonnage out of Asia Pacific jumped +8% in the previous week compared to the week before (WoW), as economic activity in Japan returned to normal after the Obon holiday period, driving a recovery of global air freight volume of +4%.

In a pattern similar to the corresponding week last year, global air cargo volume rebounded week on week (WoW) after three consecutive weeks of shrinking tonnage. Following declines of -1% in weeks 31 and 32 and a -6% slump in week 33, global chargeable weight increased +4% in week 34 (18-24 August). Overall pricing rose for a second week in a row (+1%) but remained below the level seen a year earlier.

Closer analysis based on the more than 500,000 weekly transactions covered by WorldACD’s data shows that following a -60% drop the previous week, Japanese exports rebounded +90%, which accounted for 51% of the WoW Asia Pacific recovery and 46% of the global WoW jump. Volumes also rose +4% out of the Middle East & South Asia (MESA) and +3% from Africa, whereas traffic shrank -1% out of Central & South America (CSA) and was flat out of Europe and North America. Europe’s lack of momentum can still be attributed to the Assumption holiday period, also seen last year.

On the basis of comparing the last two weeks with the previous two-week period (2Wo2W), CSA was the only region showing growth (+2%) in overall tonnage, which was driven by a +4% gain in exports to Europe. Global tonnage decreased by -5% on a 2Wo2W basis, led by a -11% slump in traffic out of Europe, which registered declines between -9% and -12% in all major trade corridors, attributable to the summer vacation. Likewise, tonnage out of North America (down -5% overall), declined in all directions.

Exports from Asia Pacific show WoW increases in chargeable weight of +4% to the USA and +7% to Europe, leading to a year on year (YoY) increase of +3% and +9% respectively. Export growth to the USA was led by Japan (+80%), Thailand (+19%) and South Korea (+11%), while volume outbound China and Hong Kong to the USA declined -1%. Looking into the growth of the Asia Pacific to Europe trade flow (WoW +7%), Japan (+79%) and South Korea (+19%) were the main contributors, but also China and Hong Kong (+4%).

Moderate price increase leaves rates below 2024 level

Average air freight pricing rose +1% WoW to $2.44, with the biggest increase (+4%) out of the MESA region, while North America, CSA and Africa showed +1% increases. Rates were flat out of Europe and declined -1% from Asia Pacific, impacted by a strong rebound of lower-yielding intra-Asia Pacific traffic. YoY pricing was down -2% overall, with Africa (+7%) and Europe (+2%) the only origins where rates climbed. Rates fell -15% out of MESA and retreated -4% and -2% respectively from Asia Pacific and CSA, while North America remained flat.

Pricing out of Asia Pacific shows a marked discrepancy between the transpacific and westbound to Europe sectors. Whereas spot rates to the USA decreased -2% WoW to end up -20% lower YoY, pricing to Europe rose +3% to a -2% decline YoY. Similarly, rates from China to the USA weakened -3%, but rose +4% to Europe, on a WoW basis.