XADD Summary
Global air cargo spot rates edged up in Q4 2023, surging by 21% in December compared to the August low to stand at USD 2.59 per kg. This can be mainly attributed to increases in air cargo demand triggered by e-commerce out of Asia. It is in contrast to the peak season in 2022 which saw a stagnated market.
But this surge in demand was not enough to reverse the year-on-year decline in spot rates witnessed throughout 2023. Spot rates in the last week of December 2023 were 25% below the rates recorded in the final week of 2022. However, the average global spot rate recorded at the end of December 2023 was still 40% above its pre-pandemic level in the corresponding period in 2019.
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