Improved stability in the aviation market has helped slow the rate increases registered since the start of the war in Iran.
The latest figures from data provider WorldACD show that the average air cargo spot rate increased by 1% week on week in the week ending 19 April (week 16) to $3.73 per kg.
In the eight weeks since the start of the war in Iran at the end of February, rates have increased by 40%, WorldACD figures show, roughly a 6.5% average increase each week.
Last week, rates were up 3% compared with the prior week.
The data provider said that the slowdown in the weekly rate increase comes as the aviation industry has seen some stability return to the market.
“The steep rise in average global air cargo rates since the US and Israel began their war against Iran appears to be slowing, with the ceasefire broadly holding and allowing capacity to and from the region to further rebuild,” the analyst said in its weekly market update.
“That rise of only 1% is the smallest week-on-week increase in average worldwide spot rates since the start of the war.”
The increase was driven by a 3% week on week rise in spot rates from Asia Pacific origins to $5.14 per kg.
“Although the ceasefire, in place since 8 April, remains fragile – especially for ships in the Strait of Hormuz – it has brought some limited stability back to aviation markets within the region, which have been in extreme turmoil since the military campaign against Iran was launched on 28 February,” WorldACD said.
It pointed out that capacity in the Middle East/South Asia region was last week down around 30% since the start of the war, but this is an improvement on the 35% decline registered just a week earlier.
Air cargo capacity from South Asia was last week almost back to pre-war levels, while from the Middle East the gap narrowed to 46% compared with 53% two weeks ago.
While the weekly rate increase has narrowed compared with last year, prices remain 46% above the prior year level.
