WorldACD reports ‘serious’ growth in air cargo business, yield

While air cargo growth seemed to cool off a bit in March after its torrid pace through much of 2017, the latest April and first-quarter figures from WorldACD suggest that April saw a more robust year-over-year growth rate for air cargo volume and even more so for air cargo yield.

Taking into account the distorted effects from the Chinese New Year, WorldACD said the first three months of 2018 saw a 4.8 percent growth worldwide in air cargo volume, compared to the Q1 from 2017. Meanwhile, volume figures for April 2018 were 4 percent higher, year-over-year. While the April figure is lower than the Q1 growth rate, the market data firm said the results point to “serious business growth in air cargo” for month.

The worldwide air cargo yield for April also rose to US$1.93 in April 2018, which is a 2 percent rise compared to March 2018, and 16 percent jump, y-o-y. Measured in Euros, the m-o-m yield also increased by 2 percent, but y-o-y, the increase was just 1.5 percent.

Cargo demand for the first four month of 2018, as measured in direct tonne kilometers (DTKs), rose by 5.6 percent, WorldACD said, “against an increase of 4.6 percent in kilograms, showing that the average distance per shipment flown continues to grow, but by a smaller percentage than a year ago.”

Pharmaceuticals transport from January to April also increased by 17 percent, y-o-y, while high-tech shipments rose by 11 percent. Perishables, which WorldACD said is the largest category of specialized cargo, grew at less than the worldwide average of 4 percent.

The origin Africa air cargo volume contracted again, WorldACD added, falling 2.1 percent, y-o-y, in April, but the origin North America air cargo rose 8.6 percent,  y-o-y, while Central and South America, reached double-digit growth, rising 10.5 percent in April. “Argentina deserves special mention this month,” WorldACD reported. In outgoing business, Argentina saw 26.5 percent growth y-o-y, “largely thanks to more than doubling its business to Europe.” Meanwhile, incoming business in Argentina soared with 30.9 percent growth, due mostly to “a large increase in volumes from North America.”