Air cargo has been struggling this year but in July while it still declined again, it did not get any worse and showed one of smallest decreases since January, according to WorldACD Market Data.
The analyst reported total chargeable weight was down 4.2 per cent year-over-year (YOY) but up 5.1 per cent month-over-month (MOM). General cargo fell 7.4 per cent YOY while special cargo rose 3.5 per cent YOY.
Meanwhile, direct ton kilometres fell 4.2 per cent YOY and yields stood at US$1.75, down 7.7 per cent YOY and 1.7 per cent MOM. The cargo load factor fell by three percentage points YOY and by 0.6 MOM.
High-tech and other vulnerable goods increased by 6.4 per cent YOY, whilst pharma and temperature-controlled cargo rose by 10.8 per cent YOY. Perishables in total grew 3.7 per cent YOY. Flowers, fruits and vegetables did best, growing 6.1 per cent YOY) and meat did worst, falling 3.4 per cent YOY.
WorldACD explained: “Upheaval in international relations has been the order of the day this year. And even though the worst effects of the US-instigated trade war may still have to reach air cargo, the general sentiment in the world is obviously not doing the industry a whole lot of good.”
Now consumer goods have also been targeted for tariff increases, the analyst said air cargo figures as from August may well take an even deeper dive than shown so far.
Industry revenues have taken a hit, according to WorldACD, who said Asia Pacific and Europe have been the biggest losers so far this year, with outgoing revenue down 10.9 per cent and 14.8 per cent, respectively, and 11.4 per cent and 10.8 per cent, respectively, for incoming revenue.
The analyst did add though on a more positive note, some airlines have filled the large gap left in a number of markets by the demise of Jet Airways. In the India to the Netherlands market, Jet Airways’ competitors grew considerably in this market, whilst the average rate increased by 7.5 per cent.