English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese
singapore-signs-smart-logistics-mou-with-south-koreaSINGAPORE: November 21, 2017. Government enterprise agency IE Singapore has signed an MoU with South Korea's Gyeonggi province to...
decathlon-takes-to-the-railsDOURGES, France: November 16, 2017. Maersk Line and Damco, subsidiaries of A.P. Møller – Mærsk, have completed their first block train...
mia-director-resignsMIAMI: November 14, 2017. Miami-Dade County Aviation Department director and CEO Emilio González, the driving force behind much of...
finland-opens-new-rail-route-to-chinaKOUVOLA, Finland. November 12, 2017. A new weekly rail service between Northern Europe and China launched on November 10 as the first...
truck-manufacturers-face-class-action-lawsuitLONDON: November 14, 2017. UK law firm Collyer Bristow has established a £100 million class action for truck operators that may have...
imd-acknowledges-family-business-excellenceGRAN CANARIA, Canary Islands: November 10, 2017. Swiss business school IMD has recognized global brand management company Pentland...

Good air cargo times here to stay?

AMSTERDAM: June 01, 2017. WorldACD says one month ago the whole air cargo business was "over the moon, so to speak," as March 2017 had shown the best year-on-year (YoY) performance since the 2008-2009 crisis:

"The month of April now being accounted for, industry players may well wonder whether they are back on earth or still in seventh heaven, such was the difficulty in understanding the March-April figures.

"Worldwide growth in April was respectable, with a 7.7 percent volume increase YoY, but different parts of the industry showed very different performances. In Direct Ton Kilometers, the growth was 8.5 percent, indicating an upward trend in the average distance between origins and final destinations of shipments. Revenues did well, as worldwide yield improved further: it grew by two US$ cents month-over-month (MoM) and by five US$ cents YoY.

"Because of calendar effects, the March results were somewhat inflated, particularly for Europe which felt the influence of a late Easter very strongly: a YoY outbound volume growth of 19 percent in March was followed by a meagre 5 percent in April, but the two months together still averaged an impressive 12.1 percent YoY growth outbound (and 9.3 percent inbound).

"April originating volume growth YoY ranged from 14 percent in Asia Pacific to -3 percent in Africa. When taking March and April together, we see a YoY growth in all regions that is stronger than the growth in January/February, except for Africa.

"Keen followers of the liturgical and lunar calendars may be able to tell whether this is all or partly due to a combined Lunar New Year & Easter effect, with a monthly change in the number of 'good cargo days' thrown in for good measure.

"The long and the short of it? It seems safest to look at the total for the first four months of the year: volume was up a solid 9.0 percent compared with 2016. To put this in perspective, the first four months of 2016 were flat compared with the same period in 2015.

"There are, however, other signals as well. The usual worldwide air cargo drop from March to April was large this year: -8.0 percent compared to an average fall of -4.0 percent in the previous three years.

"While the March-April drop had become gradually smaller over the past three years in almost all regions, it became larger this year in all regions except in Latin America (which has a completely different March-to-April dynamic).

"So, the growth acceleration we witness since Summer 2016 continued this year, but the size of the March-April drop in 2017 may act as a caveat against the view that good times are here to stay.

"Whilst one would expect origins like Hong Kong and China East to do very well when Asia Pacific is growing as much as it does (they do very well indeed!), the surprise of the first part of 2017 in Asia Pacific is really Japan, which seems well on its way to shed the lackluster air cargo performance of last year.

"The country is among the world's serious growth markets, both inbound and outbound. Good news came from two smaller markets as well, with a growth of over 30 percent YoY for the cargo originating in Vietnam and Poland.

"The perishables market hardly grew. Among the larger Perishables producers, Kenya (+0.3 percent), Ecuador (+1.6 percent) and Egypt (+7.4 percent) improved less than Colombia (+13.3 percent), Norway (+15.6 percent) and Brazil (+16 percent).

"The air cargo pharma market, however, grew by a healthy 12.1 percent, even though the top producer India stagnated in the first four months of 2017."

WorldACD provides market data on air cargo based on primary sources and covers all countries in the world.

- powered by Quickchilli.com -