Market analyst WorldACD Market Data has reported that April was the first month in which all regions were “confronted with the growing impact of adverse market movements” that started last September.
For both incoming and outgoing air cargo, each region returned year-on-year (YOY) volume figures worse than the first quarter (Q1) of the year, which WorldACD said underscores the clear slowdown in global business.
Looking at the business one spade deeper on the level from region to region, it saw some markets at least in which YOY figures for April were better (less worrisome) than those for Q1.
The analyst said: “In this respect, we mention business from Africa to Asia Pacific and to the Americas, as well as business from Central & South America (C&S Am) to North America and to the Middle East & South Asia (MESA).
“We noticed another development which merits some attention. In the regions Africa, MESA and North America, the YoY figures for traffic within the region were slightly better in April than in Q1.
“This development contributed to the fact that, for the first month in a long period, DTK’s (direct ton kilometres) dropped more than volume (-6.7% vs. -6.4% YoY). In other words, the average distance over which shipments were carried, got shorter in April.”
WorldACD said there is no denying that the bigger air cargo regions are “hit hardest in the uncertain times we live in”.
“Traffic from Asia Pacific to Africa grew, but that hardly offers consolation to the Asia Pacific market. Europe and North America, as well as MESA, were even denied such a small glimmer of hope. The contraction of business from these areas was shown in negative percentages not seen for years.
“And adding insult to injury, the trend in worldwide yields further contributes to worsening results for airlines. Whilst yields (measured in USD) grew by 11% from 2017 to 2018, they have fallen by 5% from Jan-Apr 2018 to Jan-Apr 2019. And their YOY decline is growing by the month,” the analyst said.