Global air cargo rates maintained stability during the first two weeks of October, with an average rate of $3.13 per kilo, encompassing both spot and contract agreements. This stability occurred despite a reported third consecutive week of declining air cargo volumes worldwide. The primary factor cited for this reduction in tonnage was China's annual 'Golden Week' holiday period, which typically impacts manufacturing and logistics activity.
Despite the recent weekly downturn, the overall global air cargo tonnage for the period still registered a significant 9% increase compared to the same period last year. This suggests that while short-term holiday effects can cause fluctuations, the underlying demand for air freight remains robust on a yearly basis.
For freight forwarders and operations managers, the stable rate environment provides some predictability in pricing, which can be beneficial for quoting and budgeting. The volume dip due to Golden Week is a recurring seasonal event, meaning forwarders should anticipate and plan for similar slowdowns in future years, particularly for shipments originating from or destined for China. The strong year-on-year tonnage growth indicates continued demand, suggesting that any rate stability might be temporary if volumes rebound strongly post-holiday, potentially leading to upward pressure on rates.
