Global Crossing Airlines, also known as GlobalX, has teamed up with digital freight exchange platform Airblox to provide direct, cost-effective cargo services between Chicago O’Hare International Airport and San Juan, Puerto Rico.
This new service, starting October 10, 2024, will operate three times a week, filling a significant market gap for direct containerized transport.
The cargo flights will utilize the Airbus A321 converted freighter, known for its efficient fuel consumption and increased containerized capacity compared to traditional freighters. “We’re excited to offer this high-demand route through the Airblox platform,” said Ryan Goepel, President and CFO of GlobalX. “The A321F freighter delivers 14% more containerized capacity than the B757-200, along with a 19% reduction in fuel consumption. This combination allows us to offer industry-leading pricing and operational efficiency.”
The service will cater to industries such as pharmaceuticals, automotive, and medical supplies, which heavily rely on consistent freight access to Puerto Rico. Neel Jones Shah, an Airblox board member, noted the importance of the new route: “There’s no freighter capacity between San Juan and Chicago, particularly for express service. We anticipate high demand from the Midwest to Puerto Rico and vice versa, as many businesses need reliable, regular capacity for time-sensitive shipments.”
The partnership marks a significant step for GlobalX, as the airline has faced challenges in growing its cargo business since mid-2023 due to regional freight demand and competition with Boeing 737-800 freighters. By leveraging Airblox’s platform, GlobalX aims to secure medium-term contracts, providing stability in cargo volumes.
Airblox’s innovative marketplace, launched in 2022, allows small and medium businesses to secure future blocks of cargo space through blockchain-based transactions. The platform also facilitates financing and insurance options, making it particularly attractive for freight forwarders needing consistent pricing and capacity on routes like the new Chicago-San Juan service.
“This collaboration enhances our network and offers forwarders greater reliability and efficiency for their cargo needs,” Shah added. Businesses can reserve space for shipments 30 to 120 days in advance, benefiting from the medium-term contract structure that provides predictability and potentially better rates.
As GlobalX positions itself to capitalize on this opportunity, the airline hopes to expand service on this route if demand proves sustainable, offering a valuable service to the airfreight industry and meeting the specific needs of forwarders on this essential route.
MSC Air Cargo, recently rebranded from AlisCargo Airlines following its acquisition by the Mediterranean Shipping Company, has officially launched operations under its new name.
The Milan-based carrier has selected Hong Kong Air Cargo Terminals Ltd (Hactl) as its service partner for cargo handling, ramp services, and documentation.
MSC Air Cargo’s B777 freighters initially arrived in Hong Kong in December 2022, operating on a crewing, maintenance, and insurance (CMI) basis through Atlas Air.
The airline fully acquired AlisCargo in 2024, rebranding it as MSC Air Cargo on September 5. Since July, MSC Air Cargo has operated three weekly flights from Milan to Hong Kong, with Hactl providing comprehensive ground handling services.
Jannie Davel, Senior Vice President of MSC Air Cargo, expressed optimism about the expanded Hong Kong operations, praising Hactl’s service quality and facilities. Hactl’s Joanna Li also welcomed MSC Air Cargo’s rebranding and increased capacity, noting the company’s longstanding collaboration and the mutual growth opportunity within the Asia market.
Jannie Davel, Senior Vice President of MSC Air Cargo, says: “We are excited about the potential for our newly-expanded Hong Kong operation, and are very pleased to extend the successful historic collaboration between Hactl and ourselves. Their extensive facilities for freighter operators and their clear focus on service quality will provide us with a strong base from which to grow our business.”
Adds Hactl Executive Director – Commercial and Business Development, Joanna Li: “We are delighted to welcome back an old friend under its new name, and with its greatly increased capacity. We wish the new MSC Air venture every success, and look forward to playing a key role in its successful development in the Asia market.”
Jettainer, the global leader in Unit Load Device (ULD) management services, has signed the IATA Digitalization Leadership Charter and is now an official member of the Digitalization Leadership Forum.
The signing took place during the IATA Digital Cargo Conference, which was attended by 165 delegates from airlines, system providers, ground handling agents (GHA) and forwarders.
Through this initiative, Jettainer is taking the next step addressing comprehensively the needs and goals of airlines, forwarders, GHAs and IT system providers and developing tailor-made digital solutions for the entire air cargo industry.
A central aspect of the charter is the introduction of the ONE Record standard, enabling efficient and transparent data exchange across the entire supply chain. As part of this, Jettainer will integrate its ULDs into ONE Record as a “Digital Twin”. This would be the first Internet of Things implementation as part of the new ONE Record approach. By combining its own data sets with those of other stakeholders, Jettainer is able to provide highly enriched data sets that offer maximum transparency regarding the location, status and type of ULDs. This data can be seamlessly linked to airwaybills via the ONE Record concept web services. This also creates a new basis for understanding industry requirements better and providing more targeted solutions.
“Our IT solutions are the key to always ensure the availability of ULDs for our customers, while at the same time being as efficient as possible. Collecting and analyzing data intelligently is at the heart of what we do. This, our engagement with ONE Record and our commitment to the IATA Digitalization Leadership Charter show that we are at the forefront of this issue and take our responsibilities seriously. By driving these developments forward, we want to deliver our contribution to the digitalization of air cargo together with our partners and translate the great potential of technology into solutions and added value,” says Dr Jan-Wilhelm Breithaupt, CEO of Jettainer.
The Digitalization Leadership Charter developed by IATA and the Cargo Advisory Council aims to drive innovation, increase efficiency and promote sustainable and consistent digital transformation. By signing the charter, Jettainer commits to implementing the charter’s five guiding principles. These principles include implementing industry-wide standards, promoting sustainability, ensuring the ethical use of technology and maintaining digital leadership as well as improving resilience and protection against cybersecurity risks.
SATS Ltd, one of the world’s largest providers of air cargo handling services, has signed a three-year agreement with the International Air Transport Association (IATA) to expand the rollout and implementation of DG AutoCheck compliance solution for the safe handling and transportation of dangerous goods shipments at key stations across its international network.
This follows SATS’ acquisition of Worldwide Flight Services (WFS), a global leader in cargo handling, further strengthening its global footprint.
The expanded agreement will facilitate the adoption of DG AutoCheck at both existing and new stations across the combined SATS and WFS network, which now operates over 215 stations in 27 countries.
This extensive network handles trade routes responsible for over 50% of global air cargo volume, enabling SATS to play a crucial role in ensuring the safe transportation of dangerous goods.
“SATS is proud to have signed the first global agreement with IATA to implement DG AutoCheck across our network as part of our commitment to the highest standards of aviation safety and security. We commend IATA for this initiative which is helping to maximise safety and improve efficiency by ensuring clear compliance and visibility of dangerous goods shipments moving by air cargo,” SATS’ Henry Low stated.
DG AutoCheck is an automated compliance solution that optimises dangerous goods acceptance processes to ensure the highest level of safety. Developed in collaboration with airlines, ground handlers, and freight forwarders, it replaces manual cross-references of the Shipper’s Declaration for Dangerous Goods (DGD) and IATA’s Dangerous Goods Regulations (DGR) to help eradicate the chances of errors that may lead to shipment rejections, fines, and penalties for non-compliance.
“We are pleased to support SATS and WFS in the expanded implementation of DG AutoCheck across their global network. This solution significantly enhances the safety, accuracy, and efficiency of dangerous goods handling, which is critical as air cargo volumes continue to grow. SATS’ commitment to adopting innovative safety measures sets a strong example for the entire industry,” David Wall, IATA Director of Safety and Cargo Compliance & Operations Solutions.
The certificate handover from David Wall, Director Safety and Cargo Compliance & Operations Solutions at IATA to Henry Low, SATS’ Chief Operating Officer and CEO-designate Singapore Hub* happened on 27 September in Paris.
Airlines, freight forwarders, and cargo handlers manage the transportation of over 1.25 million dangerous goods annually, and this is forecast to grow by a further 4.9% in the next 5 years, according to the Association.
Using DG AutoCheck, IATA says cargo operations teams can:
IATA says DG AutoCheck users have reported up to a 50% reduction in processing time and a reduction in errors compared to manual processing.
September’s global air cargo market lived up to analysts’ expectations, becoming the first month of 2024 not to report double-digit growth due to a strong year-on-year comparison, but demand still rose +9% on last year, according to the latest industry data from Xeneta.
Airlines and freight forwarders now face a ‘fine balancing act’ between protecting customer relationships and being tempted by short-term revenue gains offered by increasing market volatility, including this week’s strikes at ports on the US East Coast and Gulf Coast.
“September is already old news. October is a whole new ballgame,” said Niall van de Wouw, Xeneta’s Chief Airfreight Officer. “We could see rates rising very quickly on some trade lanes because of the fear-of-missing-out (FOMO) effect as air cargo capacity leaves the market for the winter, US port workers go on strike, and conflict is escalating in the Middle East, potentially bringing further Red Sea disruption for ocean freight.”
“I have huge respect for the people who, on a day-to-day basis, are trying to make sense of these challenges and keep the world moving in an efficient manner. How much more can the market take, particularly when there’s so little visibility going forward?
“Reports suggest supply chains could take 4-6 weeks to recover from just a one-week US ports strike, which takes us into November, the busiest month of the year for air cargo volumes. It’s a difficult situation. Covid was worse but this is an accumulation of many events and things can change very quickly. FOMO is a powerful force,” he said.
Growth eased (a little) in September
As expected, September’s global air cargo demand growth showed signs of easing a little, up +9% year-on-year, reflecting the strong peak in demand which commenced in September 2023. The latest monthly volumes, however, were sustained by persistent e-commerce demand, ocean-to-air shift due to container shipping disruptions, typhoon disruptions, and a cargo rush ahead of China’s Golden Week holidays (1-7 October).
Global air cargo supply grew by only +3% year-on-year in September – its slowest growth rate this year as airlines began their flight schedule adjustments in preparation for winter. Xeneta expects a 20% reduction in cargo capacity across the Atlantic this winter, to reflect lower passenger demand.
Dynamic load factor – Xeneta’s measurement of capacity utilisation based on volume and weight of cargo flown alongside available capacity – continued to rise due to the persistent imbalance between supply (+3%) and demand (+9%) year-on-year growth. It increased by 3 percentage points year-on-year and 2 percentage points month-on-month, reaching 60% in September.
As a result, September’s average global spot rate increased +26% to USD 2.71 per kg, the fourth straight month of double-digit growth and the highest increase this year. And this occurred against a backdrop of US Gulf Coast Kerosene-Type jet fuel prices showing a -37% year-on-year decline in the same month.
Zooming into the corridor level, spot rates from Asia to North America and Europe topped the chart in September, exceeding the other major global corridors by over two US dollars per kg. Most Asia to North America and Europe rates showed single-digit month-on-month increases in September, except for a slight dip from Southeast Asia to North America. As for year-on-year trends, all registered double-digit growth.
The Middle East and Central Asia to Europe market saw the most striking rise in rates in September. Boosted by continued Red Sea disruptions, this traditional backhaul route saw a +112% year-on-year increase.
As for Europe to North America trade, the spot rate was on par with a month ago but is expected to come under severe upward pressure if US East and Gulf Coasts and Canada port strikes are not resolved quickly. In terms of year-on-year comparison, the corridor showed a +5% increase.
Several backhaul corridors from North America and Europe to Asia showed notable month-on-month spot rate growth: Europe to Southeast Asia (+11%), North America to Northeast Asia (+6%), and North America to Europe (+4%). In terms of year-on-year comparison, the largest decline was observed on the Europe to Northeast Asia trade, which decreased by -11% due to increased trade imbalances.
A testing time in Q4
Global events, van de Wouw says, will now put preparations for this year’s peak season to the test.
“As we’ve said before, companies are more prepared this year and the rules of the game have been clarified between airlines and forwarders as well as between forwarders and shippers. There are now more precise agreements in place on how to navigate the storm the market is likely entering.
There are agreements around rates, surcharges, and the timeframes in which they can be applied, but there’s going to be a fine balancing act between maintaining relationships and being tempted by the short-term benefits these market conditions are creating,” he said.
“The macroeconomic outlook for 2025 is not fantastic, particularly as it impacts the general freight market. That may make the current volatility and opportunities for rate increases very tempting for carriers. We are already picking up signals that peak surcharges are being accepted by forwarders and shippers because the capacity providers clearly have the upper hand.
“The rules that have been agreed upon mean there’s less room for the temptation of large rate increases during a hot peak. But we do see a piece of the market where you’ve got to ‘pay to play’ and that could become a potential ‘wild west’. Shippers or forwarders may end up there due to unforeseen demand and it could be an expensive game,” van de Wouw added.
An enduring US ports strike, he says, may produce a significant bonus for airlines across the Atlantic from the US to Europe, where load factors would otherwise likely remain below 65% even after the removal of surplus summer capacity. “Because of the low base, there’s a lot of room for those rates to go up if conditions become tougher and goods absolutely need to be shipped. Then we could see rates tripling.”
These factors combined, van de Wouw says, continue to support a potential double-digit growth rate for the global air cargo market across 2024.
Worldwide air cargo rates and tonnages edged up further in the final full week of September and the month as a whole, ahead of what is expected to be a strong peak season, according to the latest weekly figures and analysis from WorldACD Market Data.
After contracting by -2% the previous week as a result of national holidays in China, South Korea, and Chile, total global chargeable weight rebounded in week 39 (23-29 September) with a +2% week-on-week (WoW) increase, raising worldwide tonnages in week 39 to around +10% above their equivalent levels this time last year. That WoW increase in week 39 included traffic rebounding from Asia Pacific (+6%) and from Central & South America (CSA, +4%) – a recovery effect from the holidays the previous week. Combined with an increase from Middle East & South Asia (MESA, +2%) origins, these increases more than compensated for -2% WoW declines from Europe and North America.
Analysis of the Asia Pacific to Europe market highlights some big WoW tonnage increases in week 39 from individual countries including China (+9%), South Korea (+26%) and Taiwan (+16%), but these mostly reflect a rebound following last week’s mid-autumn festival holidays. However, tonnages from Hong Kong to Europe have risen consistently in the last five weeks (+19% compared with week 34) to their highest levels for several months. Meanwhile, tonnages from China and the wider Asia Pacific market to the USA were both up by +5%, WoW, and there were big WoW increases to the USA from MESA (+11%), including from India (+16%) and Bangladesh (+12%).
On the pricing side, average worldwide rates – based on a full-market average of spot and contract rates – in week 39 edged up slightly (+1%, WoW) to US$2.61 per kilo, taking them +10% higher, year on year (YoY), based on the more than 450,000 weekly transactions covered by WorldACD’s data. But the changes to spot rates are more pronounced, for both WoW and YoY comparisons. For example, average global spot rates rose, WoW, by +4% in week 39 to $2.86 a kilo, which is +20% above last year’s levels. The biggest WoW increase came from North America (+6%) and Europe (+5%) origins, although there were notable further increases from Asia Pacific (+3% to $4.14) and MESA (+2% to $3.62 per kilo), taking spot rates from those two regions +26% and +86% higher, respectively, YoY.
MESA and Bangladesh disruptions continue
Whereas demand and rates from most MESA origins have been highly elevated for much of this year, bolstered by the disruptions to ocean freight supply chains caused by the attacks on shipping in the Red Sea, Bangladesh continues to face additional major challenges, resulting from ongoing political instability and logistics disruptions. For example, tonnages flown to Europe from Bangladesh in September were down by around -15%, YoY, and Bangladesh to Europe spot rates have remained extremely high throughout the month, at well above US$5 per kilo. Although they eased slightly in week 39 to $5.11 a kilo, they remain easily more than double last year’s levels (+138%). Meanwhile, Bangladesh to USA tonnages are up substantially, YoY (by around +50% in September), and Bangladesh to USA spot rates of more than $7 per kilo throughout September have been more than three times their equivalent levels last year.
Amid rising tensions in the Middle East, continuing disruptions to container shipping in that region, and anticipation of US port strikes, tonnages flown from the whole MESA region to the USA have risen in the last four weeks by around +13%. In addition to the higher volumes from Bangladesh, tonnages from multimodal hubs such as Colombo and Dubai to the USA are up very substantially, YoY. For example, in the last two full weeks of September, tonnages to the USA from Colombo were around double their levels last year, and from Dubai they were around three times last year’s levels.
Full-month and quarterly increases
Provisional full-month figures for September indicate that chargeable weight rose by a further +1% compared with August, taking tonnages +9% above last year’s levels. That’s a slightly smaller YoY percentage tonnage increase compared with most months this year, although tonnages last September had already begun picking up significantly driven by rising cross-border e-commerce air cargo levels. Full-month average worldwide rates in September, meanwhile, rose by a further +3%, MoM – a stronger MoM increase than in previous months. Compared with September 2023, average worldwide (combined contract and spot) rates were up +14%, YoY, with spot rates up by +22%, YoY, to US$2.80 per kilo in September.
Analysis of the third quarter (Q3) of 2024 indicates that worldwide chargeable weight rose by a further +1%, compared with Q2 (quarter on quarter, or QoQ), and by +11%, YoY. That’s broadly in line with YoY comparisons in Q1 and Q2, which were both up, YoY, by +12%. Average worldwide rates, meanwhile, also recorded a QoQ rise of +1%, with a YoY increase of +10%.
The YoY increases in both tonnages and rates – in September, Q3 and throughout this year – have clearly been largely driven by Asia Pacific and MESA markets, and these two origin regions look set to be key factors in the final quarter of 2024. It’s unclear to what extent the still unresolved US port disputes will contribute to air cargo demand, but further disruption to container shipping there can only add to the pressure on an already stretched air cargo system – facing very strong expected demand and limited available capacity from both of those regions in Q4.
Abu Dhabi, United Arab Emirates: Ma Hawa, an Emirati brand owned by Baynunah Watergeneration Technologies SP LLC, producing sustainable Water-from-Air hydration solutions, made waves at the recently held Abu Dhabi International Hunting and Equestrian Exhibition (ADIHEX) 2024, renowned for showcasing cutting-edge products and solutions in the hunting, fishing, and outdoor industries.
Committed to providing clean and safe drinking water from the air, Ma Hawa’s devices offer a convenient and environmentally friendly alternative to traditional water sources.
The company leverages patented technology to harness the moisture in the air to provide an entirely renewable water source, suitable for various applications. Ma Hawa’s water bottles, ONBOARD and MOBILE BOX machines are also ideal hydration choice for off-the-grid activities like hunting and camping.
Ma Hawa’s participation at ADIHEX 2024 reflects its dedication to contributing to the UAE’s sustainability goals. By showcasing its innovative water-from-air technology, Ma Hawa aims to inspire action and promote a more sustainable lifestyle.
The company’s eco-friendly solutions offer a practical and efficient way to generate clean drinking water, reducing reliance on single-use plastic bottles and promoting environmental consciousness within the hunting and equestrian communities and empowering individuals to enjoy their outdoor adventures while minimizing their environmental impact.
Visitors to Ma Hawa’s booth at ADIHEX witnessed firsthand how this revolutionary technology transforms atmospheric humidity into refreshing water.
Amro Asmael, Head of Marketing at Ma Hawa, expressed his enthusiasm for the event, stating, “We are excited to showcase our groundbreaking water technology and commitment to sustainability which aligns perfectly with the UAE’s vision for a greener future. As an Emirati company, we are proud to contribute to technological innovation in water sustainability in the region. To this end, the recent retail launch of our water bottles has been a key milestone in providing sustainable, and high-quality water directly to consumers.”
One of the leading sustainable drinking water brands in the UAE, Ma Hawa is also hugely invested in building awareness among people on water security and R&D efforts to further develop AWG technology in the region, with the ultimate goal of reaching every household in the UAE.
Paris, France: ECS Group and its subsidiary AVS GSA have joined forces with Thai Vietjet and Lactasoy to help flood victims in Thailand’s Chiang Rai province.
The companies have provided crucial support to flood-affected communities in Chiang Rai which was devastated by floods. More than 8,000 families were affected in the calamity.
As part of this initiative, AVS GSA’s team collaborated with Lactasoy to donate 900 boxes of soybean milk, weighing 7.7 tons, to support affected communities. The shipments were successfully delivered on flights VZ130 and VZ132 on September 18 and 19, 2024.
Additionally, AVS-GSA acted as the General Sales Agent (GSA) for Thai Vietjet Air, which offered complimentary air transportation of relief items, including food, water, and clothing, to the flood-hit areas.
Air travel at Swedavia’s ten airports increased by two per cent compared with August 2023. The increase was driven by continued strong international travel, which increased by five per cent, while domestic travel decreased by nine per cent. In August, international travel at Stockholm Arlanda Airport increased by five per cent and increased by four per cent at Göteborg Landvetter Airport.
“Demand for international travel at Arlanda and Landvetter continued to be strong in August. During this year’s summer traffic programme, a total of 25 new routes were launched, of which 17 were new routes via Sweden’s largest airport, Stockholm Arlanda Airport. Our work to strengthen connectivity continues, and yesterday’s announcement that the flight tax will be abolished improves the opportunities significantly,” says Jonas Abrahamsson, Swedavia’s President and CEO.
During the summer, airlines continued to invest in strengthening Sweden’s connectivity.
During this year’s summer traffic programme, 25 new routes were launched, of which 17 were new routes from Sweden’s largest airport, Stockholm Arlanda Airport, and eight were new routes from Göteborg Landvetter Airport. Investments have also been made to add charter flights from Malmö Airport, Åre Östersund Airport, Umeå Airport and Luleå Airport.
The market with the highest percentage growth this summer – June and July
Markets with over 100 per cent growth: Montenegro, Albania, Canada, China, Tunisia and Morocco. Followed by: Lithuania, Estonia, Croatia and Jordan.
During August, more than 3.1 million passengers flew via one of Swedavia’s ten airports. The numbers for August are two per cent higher compared to August of last year. International air travel increased five per cent to over 2.5 million passengers, while domestic travel decreased nine per cent to just over 588,000 passengers. Total passenger traffic at Swedavia’s airports in August was about 83 per cent of pre-pandemic levels in 2019.
Sweden’s largest airport, Stockholm Arlanda Airport, served a total of just over 2.2 million passengers in August. This represents an increase of six per cent compared to August of last year. International travel increased seven per cent to just under two million passengers, while domestic travel decreased six per cent to just under 255,000 passengers. In August, overall passenger levels at Arlanda were 91 per cent of pre-pandemic levels.
Göteborg Landvetter Airport served a total of just over 530,000 passengers in August. This is a four percent increase compared to August of 2023. International travel increased by seven per cent to just over 493,000 passengers, while domestic travel decreased by 25 per cent to just over 37,000 passengers. In August, passenger levels at Göteborg Landvetter were 84 per cent of pre-pandemic levels.
Swedavia’s other eight airports had mixed results in August. Ronneby Airport, followed by Kiruna Airport, had the strongest passenger growth in August compared to August of last year. Kiruna Airport, followed by Luleå Airport, had the best passenger growth in August compared to pre-pandemic levels. Malmö Airport, followed by Bromma Stockholm Airport, had the weakest passenger growth in August compared to August of last year. Bromma was closed for four days in August due to planned runway work, which had a negative impact on traffic numbers for the month.
Worldwide air cargo demand and pricing have stayed strong throughout August, with tonnages up +10%, year on year (YoY), and rates +12% above last year’s levels, according to the latest figures and analysis from WorldACD Market Data.
It covers each of the last 5 weeks up to Sunday September 1, 2024.
August’s YoY comparison figures are similar to those in July 2024, when chargeable weight was up +13%, YoY, and rates showed a +10% YoY improvement. Compared with July, total flown chargeable weight dipped slightly in August, by -2%, but average yields edged up by a further +1%, to US $2.49 per kilo – based on a full-market average of spot rates and contract rates.
Prices from Asia Pacific origins also rose by a further +1% in August, compared with July, to $3.26 per kilo, taking them +22% above their equivalent level last year. And rates from Middle East & South Asia (MESA) origins rose by another +3% to average $2.81 per kilo, taking them +58% higher than last August’s levels. Both those key regions saw tonnages slip slightly in August, compared with July, by -3% and -2%, respectively, but they remain +13% and +10% higher than last August, based on the more than 2 million monthly transactions covered by WorldACD’s data.
Average contract rates and spot rates both rose slightly in week 35 (26 August to 1 September), to $2.41 and $2.71 per kilo, taking overall average rates to $2.51. That’s +13% above last year and an increase of +46% compared with the last pre-Covid equivalent period, August 2019.
Meanwhile, tonnages in week 35 slipped by -1%, week on week (WoW), due to week-on-week (WoW) decreases from North America (-4%), Europe (-2%), MESA (-1%) and Central & South America (CSA, -1%) origins. The drop in volumes ex-North America is related to the Labor Day holiday weekend in the US and Canada, impacting capacity by -5% WoW in week 35, tonnages by -4% and rates by +4%, WoW.
Combining the figures for weeks 34 and 35, tonnages and rates both rose by +1% compared with the previous two weeks (2Wo2W), thanks largely to a +5% rebound in demand from Asia Pacific origins. Among the biggest changes were 2Wo2W increases in tonnages from Asia Pacific to MESA (+4%) and to Europe (+5%), plus strong intra-Asia Pacific volume growth of +8%. Half of that +8% intra-Asia Pacific rise was driven by the recovery of tonnages from Japan, with intra-regional traffic also rising from Hong Kong and South Korea. Those three origins together were responsible for three-quarters of the +8% 2Wo2W intra-Asia Pacific rise in chargeable weight.
Asia dynamics
Total tonnages from Asia Pacific origins were unchanged, WoW, despite a further +6% WoW recovery of volumes from Japan from the effects of Typhoon Ampil. After tonnages from Japan fell by around -60% in week 33, volumes from Japan saw a strong recovery (+102%) in week 34. However, tonnages from Japan in week 35 were still -12% below their levels in week 32. The delay in that recovery is likely linked to the impact of Typhoon Shanshan, which affected air cargo traffic to and from Japan and South Korea in week 34. The +6% WoW increase in tonnages from Japan in week 35 was wiped out by a -2% decrease ex-China, leading to the stable WoW tonnage result for Asia Pacific overall.
Elsewhere, in the MESA region, the continuing disruptions triggered by political instability in Bangladesh, in addition to the effects of the Red Sea disruptions, caused spot rates from Bangladesh to Europe to rise slightly further to a new high of US$5.06 per kilo. And spot rates ex-Sri Lanka rose again to their second-highest level this year, at US$3.66 per kilo.
Peak performance
The relatively robust performance of the market throughout the summer in the northern hemisphere will leave air cargo stakeholders anticipating a busy fourth quarter (Q4) peak season, likely to be characterized by high and rising prices that reflect high load factors and shortages of available capacity on certain head-haul lanes, especially from Asia. In addition to the usual rise in seasonal demand in the final months of the year, air cargo looks set to experience an additional seasonal spike from e-commerce shipments, especially from China and Hong Kong, as it has in the last two cycles. Meanwhile, potential industrial action at US East Coast and Gulf container ports could lead to further conversion of sea to air cargo, in addition to that already occurring due to the disruptions to Red Sea shipping.
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