Global air cargo rates fell sharply after the year-end peak season, with prices dropping across major trade lanes, reports Mumbai's STAT Trade Times.

Freightos Air Index data showed China-North America rates down 16 per cent week on week to about US$6.26 per kg, the lowest since early November. China-North Europe prices fell 5 per cent to $3.52 per kg, while North Europe-North America rates declined 14 per cent to $2.16 per kg.

South East Asia lanes also weakened, with US-bound rates down 19 per cent to $4.60 per kg and Europe-bound prices dropping more than 20 per cent to $3.12 per kg. The decline reflects easing demand after the traditional year-end rush.

Despite the correction, longer-term demand remains resilient. IATA said global air cargo volumes grew 11 per cent in 2024, driven by e-commerce.

For 2025, IATA forecasts volume growth of 3.1 per cent compared with the previous year, and projects 2.6 per cent annual growth in 2026.

However, uncertainty persists over whether cargo capacity growth will outpace demand next year, leaving rate projections for 2026 unclear.