WorldACD Weekly Air Cargo Trends (week 18)

Global tonnages have dropped sharply in the first week of May, due to the May 1st public holiday in most countries of the world, after a more or less stable picture in last week's report, according to the latest weekly figures from WorldACD Market Data, with rates only slightly impacted.

Figures for week 18 (1 to 7 May) show a drop of -10% in tonnages and a decrease of -2% in average global air cargo prices, week on week – based on the more than 400,000 weekly transactions covered by WorldACD’s data.

Comparing weeks 17 and 18 with the preceding two weeks (2Wo2W), overall tonnages decreased by -4% versus their combined total in weeks 15 and 16, and average worldwide rates remained stable, with flat capacity.

At a regional level, almost all origin regions showed a downward trend in tonnages, with Asia Pacific, Europe, and Central & South America being impacted by the May 1st holiday.

The most-notable decreases can be observed between Asia Pacific and Middle East & South Asia (westbound -15%, eastbound -19%), between Europe and Asia Pacific (westbound -6%, eastbound -11%), between Europe and Central & South America (northbound -24%, southbound -9%) and outbound Middle East & South Asia to Europe (-22%). Positive tonnage developments can be reported on outbound Central & South America to North America (+25%), driven by the flower exports ahead of Mother’s Day on 14 May, and outbound Europe to the Middle East & South Asia (+6%).

In terms of pricing, on a 2Wo2W basis, average rates show a positive trend ex-Central & South America to North America (+6%) and to Europe (+7%), and from the Middle East & South Asia to Europe (+4%); for most other major air cargo lanes, rates have been stable or decreasing, with the most significant drop seen from Europe to Africa (-7%).

Year-on-Year perspective

Comparing the overall global market with this time last year, chargeable weight in weeks 17 and 18 was down -9% compared with the equivalent period last year. Most notable are the double-digit percentage decreases in year-on-year tonnages ex-North America (-21%) and ex-Europe (-13%).

Overall capacity has increased by +13% compared with the previous year, with double-digit percentage increases from all regions – except from North America (+8%), and Central & South America (+2%). The most notable increases were ex-Asia Pacific (+31%), ex-Africa (+14%), and ex-Europe (+13%).

Worldwide rates are currently -36% below their levels last year, at an average of US$2.52 per kilo in week 18, despite the effects of higher fuel surcharges. However, they remain significantly above pre-Covid levels.