India-Europe April first week air cargo spot rates rose to $4.13/kilo

According to WorldACD air cargo market data for the first week of April, India-Europe spot rates rose to more than $4 a kilo in week 14 ($4.13/kg, +160 percent).

While Bangladesh-Europe spot rates soared to $4.59 a kilo in week 14 – a near-trebling of their level this time last year (+179 percent).

In fact, the Middle East & South Asia (MESA) to Europe spot rates have soared in the last three weeks to around double their level this time last year, rising to $3.43 a kilo in week 14 (+109 percent).

The big surge in spot rates from MESA to Europe in recent weeks was linked to strong demand developments combined with supply issues caused by disruptions to container shipping and Ramadan.

“It was boosted by strong demand from cross-border e-commerce and because of the ongoing disruptions to container shipping in the Red Sea.”

Alongside continuing rate rises, another factor beginning to have an impact on rates is increasing jet fuel prices.

Jet fuel prices rose by more than +4 percent in week 14, compared with the previous week, and rose more than +3 percent on the previous month, although they remained slightly below their level this time last year (-1 percent).

Key hub airports in the Middle East and Asia have seen particularly strong demand this year due to the disruptions to container shipping in the Red Sea.

Particularly those commonly used as Asia-Europe sea-air hubs or road-air hubs, including Dubai, Colombo and Bangkok.

“Dubai-Europe tonnages were still massively elevated (+114 percent) in week 14 compared with the same week last year, with tonnages in week 14 very close to their peak levels recorded in week 8.”

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