December 2019’s worldwide air cargo chargeable weight fell 1.7% year-on-year (YoY) while 2019 full year dollar revenues dropped 11.7% over boom year 2018.
The December volume figure was the smallest decrease since January 2019, but in its latest market data report, Netherlands-based analyst WorldACD said: “The year ended with a mixed picture, not with the positive figures the air cargo world had hoped for.”
WorldACD said that the results for the full year 2019 “were not impressive”, adding: “Worldwide revenue, measured in USD, fell by 11.7% compared with the top year 2018, whilst it did not grow compared with 2017 either. The main reason was a YoY yield drop of 7.6%, as total weight fell by 4.4%. And although pharmaceuticals and vulnerable goods (including high-tech) both showed growth of around 8.5% in volume, their yield drops – though not as steep as in general cargo – were a cause for concern for the airlines.”
Europe-origin airfreight took the “hardest hit” in 2019, losing more than 16% of its dollar revenues of the previous year, equal to -12% in euros, with Germany accounting for half of Europe’s woes.
The smaller regions of Africa and Latin America fared better than the larger regions in the northern hemisphere, said the analyst: “Whilst in Asia Pacific and Europe outbound was slightly better than inbound, the opposite was the case for North America.”
In its commentary on the main story of the past year, “the influence of Trump’s trade wars on the world’s trade flows,” WorldACD stated: “Many have attributed (part of) the disappointing 2019-results for air cargo to the worsening US-China relationship, but trying to establish where the consequences of the trade war were felt most, is not all that easy.”