WorldACD: Special cargo bucking the trend

Analysis from WorldACD indicates airfreight volumes for September 2019 are similar to that of the previous six months, with a 5.4% decrease in volumes and a 6.1% direct ton km (DKT) decrease.

However, special cargo is playing an ever-more important part in differentiating airfreight markets as demand in general remains weak.

Over the January-September period, a disparity emerged among the 40 largest origin countries, whose combined air cargo output accounts for 87% of volumes globally. Ten of these countries posted year-on-year growth in volumes – which came out at a combined figure of 8.3% – while the remaining 30 countries registered a decline of -7.4%.

WorldACD attributed this development to a 10.3% increase in special cargo volumes from the 10 growing countries in the first nine months of 2019.

“The other thirty countries barely managed to grow in this category: +0.6%. But even more telling is the fact that in the top 10 countries combined, more than half of the total consists of special cargo (51.4% for Q1-3 2018 vs 52.3% for Q1-3 2019). For the other 30 countries, the share of special cargo is only a quarter.

“For years already, special cargo has outgrown general cargo, a trend propelled by an increased worldwide demand for special products (in particular perishables),” WorldACD went on. “Thus, it does not come as a surprise that Norway, Kenya, Colombia and Chile, countries in which outgoing special cargo accounts for more than 80% of the total, are all part of the top 10 group.”

Norway topped the list with growth of almost 20%; Pakistan and Vietnam also achieved growth above 10%. China saw no overall growth, but it recorded a 12.8% year-on-year increase in special cargo (mainly high-tech goods).

WorldACD said the role of special cargo is evident not only in volumes, but also in yields and rates.

“In Q1-3 2019, we saw the USD-yield drop by 8% year on year for general cargo, but by 4% for special cargo. And the gap was larger still in the above mentioned top 10 countries, which saw their combined special cargo yields drop by 2% only.”

Special cargo flown in September was up year on year, by 2.7%, with fish, seafood, pharma and other cool chain goods performing best.

But overall, the picture remains somewhat gloomy. General cargo declined by 8.7% compared to the same month of 2018 and total worldwide airfreight volumes shrank by 5.4% year on year in September, in a continuation of the pattern in the preceding six months.

Yield dropped by 11.5% year on year to $1.72. Air cargo revenues also fell, declining by 16.3%. The cargo load factor was 3.6 percentage points lower than a year ago – but 2.3 points higher month on month.

WorldACD said: “All origin regions suffered, Asia Pacific most (volumes down by 5.8% year on year, and revenues in USD by 18.9%) and Africa least (volumes down by 3.2% year on year, and revenues in USD by 6.2%).

“The destination Middle East and South Asia did better than all other destination areas (volume year on year -1% only).

“During the first three quarters of the year, all areas showed negative year-on-year trends, both in outgoing and in incoming volumes; Africa outbound was the only exception, registering a mere 1.1% increase.”

Share this story

Related Topics

Latest statistics news

Liege Airport cargo volumes bounce back after tough 2023

Liege Airport has seen its cargo volumes bounce back in the first two months of the year following a double-digit…

Read More

Share this story

Technavio predicts strong air cargo growth in next few years

Industry analyst Technavio has forecast in its Air Cargo Market Analysis 2023-27 that the air cargo market will grow by…

Read More

Share this story

Lufthansa Cargo extends its agreement with IATA for CargoIS

The International Air Transport Association (IATA) has confirmed that Germany freight carrier Lufthansa Cargo has renewed its agreement to use…

Read More

Share this story

Air Cargo News

Air Cargo News
Established in 1983, Air Cargo News is the leading source of news, information, interviews, analyses and reports to the global airfreight industry. Our leading portfolio includes print, digital and events that give businesses in the airfreight industry the ability to connect with decision-makers in this sector.