Worldwide air cargo rates dropped 1% over the past five weeks while chargeable weight increased modestly, reflecting mixed signals in the global freight market as shipping patterns continue adjusting to economic uncertainties.
Data from WorldACD covering more than 500,000 weekly transactions shows rates falling to $2.44 per kilogram in the week ending August 24, down from $2.50 five weeks earlier. The decline represents the continuation of pricing pressure that has characterized much of 2025’s freight market.
Regional performance varied significantly during the period. Africa posted the strongest growth with chargeable weight up 13% year-over-year, while Asia Pacific volumes increased 6% compared to the same period in 2024. North America bucked the trend with a 2% decline in freight volumes.
European markets showed resilience with 5% annual growth in chargeable weight despite broader economic headwinds affecting the region. Middle East and South Asia recorded similar gains at 5%, suggesting continued strength in emerging market trade flows.
The two-week comparison reveals more volatile short-term patterns. Most regions experienced declines when comparing the latest fortnight with the previous two weeks, indicating potential seasonal adjustments or temporary demand softening.
Capacity constraints remained a factor across several trade lanes. Asia Pacific faced an 8% year-over-year capacity reduction, contributing to pricing stability despite volume growth. Africa experienced similar capacity pressures with a 6% annual decline.
North American routes showed mixed dynamics with slight capacity increases failing to offset demand weakness. The region’s 2% volume decline suggests ongoing inventory adjustments among major importers and shifting trade patterns.
Rate variations across specific trade corridors highlighted the complex nature of current market conditions. Some routes maintained premium pricing due to capacity limitations, while others faced competitive pressure from excess availability.
Industry analysts note that cargo rates typically reflect broader economic sentiment and trade flow expectations. The current environment combines inflationary pressures with concerns about consumer spending and business investment in key markets.
Seasonal factors also influence freight patterns, with traditional peak shipping periods potentially shifting due to supply chain adaptations developed during recent disruptions. Companies continue adjusting logistics strategies to balance cost and reliability.
The data suggests air cargo markets remain in transition as global trade patterns stabilize following several years of exceptional volatility. While overall trends point toward normalization, regional variations indicate continued complexity in freight planning.
Forward bookings and capacity deployment decisions by major carriers will likely influence pricing trends through the remainder of 2025. Market participants are closely monitoring economic indicators and trade policy developments that could affect demand patterns.
Source: newsghana.com.gh
