MESA capacity up 3% WoW, deficit down to 10%

Air cargo capacity from the Middle East and South Asia (MESA) region increased by 3% week-on-week in the final week of June and early July, while the region’s capacity gap narrowed to 10%, according to WorldACD Market Data. The improvement comes as global air cargo markets continue to adjust following recent disruptions.

The recovery in capacity is expected to support more stable cargo operations in the region by improving aircraft availability and helping businesses manage time-sensitive shipments. However, global air cargo rates continued to decline, with average worldwide rates falling 1% week-on-week to US$3.13 per kg during week 27 (June 29 to July 5).

Worldwide cargo volumes also dropped 2% during the week, mainly due to the US Independence Day holiday and lower demand on some trade lanes. Despite the weekly decline, global chargeable weight remained 4% higher compared with the same period last year.

MESA-origin spot rates remained strong, with prices 46% higher year-on-year, among the highest increases across global regions. The region’s capacity deficit has improved significantly from 30% in early June, showing a gradual recovery in air cargo availability. Market conditions could continue to change as geopolitical developments, including tensions involving the US and Iran, may affect capacity and pricing in the coming weeks.