Global air cargo rates rose 1% in mid-June, remaining 35% above last year as Gulf capacity rebounds post-US-Iran truce.
Global air cargo rates rose 1 per cent in mid-June to US$3.24 per kilo, staying 35 per cent above last year even as Middle East and South Asia capacity rebounded after the US-Iran truce, reported London's Air Cargo Week.
Spot rates also climbed 1 per cent to US$3.75 per kilo, which is 47 per cent higher year-on-year. MESA origin spot rates rebounded 3 per cent in week 25 to US$4.16 per kilo despite a 6 per cent weekly rise in capacity that outpaced a 2 per cent increase in tonnage.
The 17 June memorandum between Washington and Tehran accelerated capacity recovery, narrowing deficits sharply. The gap to North America shrank from 28 per cent in week 24 to 10 per cent in week 25, while deficits to Europe and Asia Pacific eased to 11 per cent and 20 per cent respectively.
Gulf markets saw notable improvements. The deficit to North America narrowed from 33 per cent to 13 per cent, while the shortfall to Asia Pacific improved from 51 per cent to 35 per cent. Capacity between the Levant and Caucasus and the wider MESA region surged back, cutting the deficit from 34 per cent to 4 per cent in one week.
Elevated spot rates persisted despite stronger supply. MESA-Europe capacity rose 13 per cent, but average spot rates held at US$3.76 per kilo, down just 1 per cent week-on-week. Dubai-Europe rates dipped 8 per cent to US$3.79 per kilo, still more than double their level a year earlier.
Analysts said high rates reflect volatility, reliance on freighters due to bellyhold shortages, and elevated fuel and risk costs. Jet fuel prices fell 14 per cent week-on-week to US$119 per barrel, which is 24 per cent below May averages but still 32 per cent higher than last year.
