Normality in air cargo still a long way off: WorldACD
WorldACD has said that normality is still a long way off for the air cargo industry, according to its latest data, which shows that the demand side of the industry was slowly improving, with volumes in July up 8
WorldACD has said that normality is still a long way off for the air cargo industry, according to its latest data, which shows that the demand side of the industry was slowly improving, with volumes in July up 8.2 per cent compared with June.
However, demand is still down by 18.5 per cent year on year, there is a 'huge capacity drop' on last year and the price of air cargo is 62 per cent up compared with 2019 levels at US$2.83 per kg (in June the figure stood at $3.12 per kg).
'There is such a lack of capacity in the market that 'normality' still seems a long way off,' WorldACD said.
It pointed out that there was a twenty-percentage point gap between the year-on-year drop in capacity and demand in July. 'The overall gap still hints at a worldwide market trying to find a new footing: 'normality' will not seem what it used to be.'
The data provider also pointed out that there were big differences in each market, reports London's Air Cargo News.
'The origins Europe and MESA (Middle East & South Asia) added most kgs to their June figures (13 per cent and 14 per cent respectively), whereby Europe managed to keep its prices reasonably stable (down 2.5 per cent month on month).
'Asia Pacific was the region performing least in month-on-month percentage changes: a 6 per cent volume growth was accompanied by a 14.4 per cent drop in US dollar prices per kg.
'Business from China has captivated the air cargo world more than ever since the start of the Covid-19 crisis.
'Coupled with a lack of capacity, this business has indeed attracted high prices. Yet, the sky-high prices posted on the internet as so-called evidence of what happens in the China market, are often based on limited numbers of shipments (sometimes even 'one-offs'), and therefore at best 'anecdotal evidence'. This needs to be put in perspective.'
WorldACD added: 'Lastly, taking a first preliminary view of the month of August, the first full week of the month showed a 0.3 per cent volume drop week-over-week, and a 2 per cent drop in worldwide prices. Having said that, prices ex-China seem to go up again, whilst prices from South Asia dropped.'