December’s dollar yields dip

Air freight volumes continued to rise in December but exchange rate and fuel surcharge fluctuations saw a 2014 end of year fall in dollar-based yields, according to research house WorldACD.
December’s healthy year-over-year (YoY) volume growth continued 2014’s trend, as chargeable weight increased 6.7 per cent, said the Netherlands-based analyst which uses primary data from global airlines.
December yields (in US dollars) dropped by 5.6 per cent, “a very worrisome figure at first sight,” said WorldACD, but citing two reasons for the fall.
The worsening Euro–US dollar exchange rate contributed to an 8.5 per cent dollar-yield decrease in December for cargo originating in one of air cargo’s largest markets, Europe. Measured in Euros, yields increased slightly.
Added WorldACD: “Overall yields were seriously influenced by a further drop in fuel surcharges. Although the yield drop was significant in Asia Pacific as well (-5.9 per cent), it was rather limited in MESA (Middle East & South Asia, -1.1 per cent) and North America (-1.6 per cent).
“The origins North America and Africa were the best monthly performers in terms of revenue growth, with YoY gains of 7.1 per cent and 6.9 per cent respectively.”
WorldACD said that 2014 was “a good year for air cargo”, with a volume growth of 6.4 per cent over 2013, and a much smaller change in dollar-yield (-1.45 per cent). Worldwide revenue increased five per cent after two years of declining revenues.
The Asia Pacific origin was above average (+ 6.2 per cent dollar-revenue increase), whilst MESA was well below (-0.4 per cent).
“North America distinguished itself as the fastest growing destination with a revenue increase of 10.9 per cent. Monthly yields decreased YoY in nine out of 12 months; they went up in June, July and August.”
Continuing the trend from previous years, revenues from pharmaceuticals and perishables outpaced the market, at 16.2 per cent and 7.2 per cent respectively.
Pharmaceuticals grew in yields by two per cent, more than the 1.2 per cent increase in 2013. But perishable cargo yields dropped by about three per cent, double the average of all cargo taken together.
The leading origins in both product markets strengthened their position: Africa and Latin America in perishables, Europe and MESA in pharmaceuticals.
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