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Break Bulk Americas

AMSTERDAM: October 03, 2017. With a worldwide volume increase in August of 12.9 percent year-over-year (YoY), air cargo continues its recent trend by again showing double-digit growth explains airfreight analyst WorldACD:

"At 14.6 percent, YoY growth in Direct Ton Kilometers (DTK's) was even higher, underscoring another trend, namely that the average distance between point of origin and point of destination of air cargo shipments keeps growing, just like the average shipment size.

"Revenues in US$ increased by more than 23 percent, helped by an average YoY yield increase of US$0.15 cents. This uncommonly high yield increase was helped by the strengthening of the € against the US$.

"In the year so far, originating Asia Pacific and Europe airfreight flows have outperformed other regions consistently. But August brought robust growth from North America as well. These three regions each posted more than 15 percent YoY volume growth.

"In North America, the only 'outlier' was domestic air cargo, which hardly grew, another quite persistent trend. From the origin Africa, we noted a YoY volume contraction (-4.0 percent), caused purely by declining business to its main markets in Europe and the Middle East.

"But southern hemisphere markets like South America and Indonesia, two other origins hardly contributing to this year's growth spurt, had reason to rejoice with a YoY growth in August of 11 percent and 21 percent respectively.

"Most of the top air cargo origin points in the world, such as Hong Kong, Germany, parts of China, Japan, Korea, the United Kingdom and the Netherlands, contribute to the booming air cargo market as one would expect from these markets.

"France, Australia and the United Arab Emirates, however, are performing well below the average for 2017, thus seeing their relative position under some threat.

"With a growth of more than 25 percent for the year up till now, Vietnam and Belgium are moving up in the rankings, Vietnam showing growth across the board and Belgium clearly profiting from its focus on improving its pharma transport infrastructure.

"Growth in the transport of high tech. and other vulnerable goods clearly outpaces the year-to-date growth in general cargo: 18 percent versus 12.4 percent, with pharmaceutical traffic the only other category growing faster than general cargo.

"Of all specific cargo products, 25 percent of the volume originates in Asia Pacific, but 30 percent of the revenues (in US$);

"In 2017 compared to last year, perishables traffic has been driven mainly by the flower business (up 9.9 percent) compared to fruits & vegetables (+5.9 percent) and fish & seafood (+4.9 percent)."

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