Home » Aviation, Breaking News » Air cargo decline in July among smallest to date

Air freight volume contracted 4.2% in July year-over-year, marking one of the smaller decreases since January and posting a growth of 5.1% month-over-month, according to WorldACD.

But the air cargo market intelligence provider had an explanation for the smaller fall in July compared to the deep drop in June (-8.9%).

“Compared to 2018, June had five Sundays instead of four, whilst the opposite was the case for July. The change in Whitsunday from May 2018 to June 2019 also played a role. Thus, June was negatively influenced and July positively,” it said.

For July, general cargo fell 7.4% year-on-year, while special cargo continued to do well with 3.5% year-on-year growth.

High-tech & other vulnerable goods increased by 6.4% year-on-year, while pharma & temperature controlled goods rose by 10.8% year-on-year. Perishables in total grew 3.7% year-on-year: flowers, fruits & vegetables did best (+6.1% year-on-year) and meat did worst (-3.4%).

Yield stood at US$1.75 (-7.7% year-on-year and -1.7% month-on-month).

Looking forward, the report said that “even though the worst effects of the US-instigated trade war(s) may still have to reach air cargo, the general sentiment in the world is obviously not doing the industry a whole lot of good.”

It added that with consumer goods now also being targeted for tariff increases, “air cargo figures as from August may well take an even deeper dive than shown so far.”

However, performances at regional, country and trade lane level may remain widely divergent, with some countries being much harder hit than others.

So far this year, year-on-year revenues (in US dollars) showed the following pattern: Africa +1.3% but South Africa -5.4%, Latin America -0.9% but Brazil -18.1%, Europe –14.8% but Germany –22.5%, Middle East and South Asia -4.8% but Bangladesh -25.5%. The report noted that jet fuel prices in July were 10% lower than a year earlier.

Asia-Pacific and Europe were the big losers in the year so far (in US-dollar revenues) with year-on-year negative growth figures of 10.9% and 14.8%, respectively, for outgoing, and 11.4% and 10.8%, respectively, for incoming air cargo. The USA, on the other hand, was down only 6% year-on-year outgoing but fell 8.5% incoming.

Meanwhile the demise of Jet Airways seemed to have had a positive effect for some airlines.

“To give but one example, in the market from India to the Netherlands the forwarding world paid the price for the fact that a very important player fell away: Jet Airways’ competitors grew considerably in this market, whilst the average rate increased by 7.5%,” said the report.

Photo: Md Shaifuzzaman Ayan

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