July airfreight performance ‘lacklustre’

The latest monthly report from airfreight market analysis provider World ACD describes a “lacklustre performance” in July.
While the global air cargo yield (measured in Euros) rose by 10.5% year on year, July represented the second consecutive month of limited growth in volumes – just 0.5% up on the same month of 2017.
Airfreight measured in direct ton-km (DTK) increased by just 0.8% year on year.
World ACD said: “When DTKs grow more than volume, that means that cargo has shifted to longer haul markets.
"Thus, given the tiny difference of 0.3%-points, the average distance between origin and final destination of air cargo shipments in July hardly increased YoY.
"Actually, the DTK-trend since January 2018 shows that the average distance between origin and destination still grows, but much less so this year than in previous years.”
There were regional differences during the month: volumes departing Africa and Europe contracted by 8.3% and 1.3% respectively, while those from other regions remained static.
As for destinations, only Europe and MESA (Middle East and South Asia) displayed growth above 1% compared to July of last year.
The picture for 2018 so far is slightly different, however. For the first seven months of this year, global volumes were up by 3.3% year on year; DTK fell by 4.1%.
Airfreight volumes out of Latin America increased by 11.6% over the same period of 2017, making it the fastest-growing origin region. Europe is top for inbound cargo, with a rise of 5.6% in January – July.
World ACD said there has been a change in the nature of airfreight consignments, too, with the average weight increasing by 1.9% year on year and shipments above 1,000 kg growing much faster than smaller shipments.
“Could this stronger growth [in heavier weight breaks] – particularly from Asia Pacific – be caused by an increase in (consolidated) e-commerce shipments?” World ACD asked, pointing out: “After all, it is not only integrators who move e-business across the globe…”
The report also compared this year’s performance with air cargo’s “last hurrah” a decade ago, prior to the global financial crisis. Over those ten years, airfreight volumes have grown by 31% (an average annual growth rate – AAGR – of 2.7%).
Highlights include cargo moving from Europe to Asia Pacific (up 80%, AAGR 6%) and from Europe to MESA (up 0%, AAGR 4.8%). Volumes on the North America to Europe sector have increased by just 9% (AAGR 0.9%) since 2008.
Vietnam has seen its outbound and inbound cargo soar by 275% (AAGR 14.1%) and 194% (AAGR 11.4%) respectively. Other high-growth countries included Ethiopia and Mexico.
Read more air cargo data news
Click here for a free digital subscription

Share this story

Related Topics

Latest airlines news

Amazon and DHL scale back ATSG freighter operations

By Rebecca Jeffrey

Amazon and DHL are expected to scale back US freighter operations with lessor Air Transport Services Group (ATSG). In a…

Read More

Share this story

Lufthansa Cargo offers temperature tracking for perishables

By Damian Brett

Lufthansa Cargo has launched a new service that provides real-time tracking of the location and temperature of perishable products. The…

Read More

Share this story

Etihad and Astral partner on Nairobi cargo flights

By Damian Brett

Etihad Cargo and Astral Aviation have signed a new partnership that will help expand the Middle Eastern carrier’s presence in…

Read More

Share this story