Global air cargo tonnage falls 4% in first week of August

Global airfreight volumes fell 4% in the first full week of August, with chargeable weight declining from all origins, while pricing and capacity also edged lower, according to the latest figures from WorldACD.

Global tonnage in Week 32, covering August 3 to 9, fell 4% compared with the previous week. Volume declined 6% from the Middle East and South Asia (MESA), followed by a 4% drop from Europe and North America. Tonnage from Asia Pacific fell 3%, while Africa and Central and South America (CSA) recorded 2% declines.

Despite the weekly decline, global traffic increased 1% year on year in Week 32. Traffic from all origins except Europe grew by 1% or 2%, while European traffic declined 1%.

Over the past four weeks, weekly traffic has fluctuated within a narrow range, alternating between contraction and growth. Compared with the previous two weeks, total chargeable weight declined 1% in the latest fortnight. Asia Pacific traffic fell 2% and North American traffic dropped 3%, while MESA and Europe grew 1%. Traffic from CSA and Africa remained unchanged.

Asia Pacific exports faced particular pressure, with volumes to both Europe and the US falling 4% week on week. Japan was an exception, with chargeable weight to the US rising 12% and to Europe increasing 3%.

Tonnage from most Asian origins to the US declined, led by Taiwan with an 11% drop and Indonesia with a 10% decline. Indonesia also recorded the largest decline in tonnage to Europe, falling 18%, followed by Taiwan at 14% and Malaysia at 12%.

Traffic from Asia Pacific, particularly China, was affected by Typhoon Dolphin, which caused evacuations in Shanghai and Beijing and more than 1,000 flight cancellations in Shanghai alone. The typhoon also caused delays at the Port of Shanghai and other Chinese maritime gateways.

Chargeable weight from Shanghai fell 8% week on week, including declines of 4% to North America, 7% to Europe and 12% within Asia Pacific.

Chargeable weight from China fell 5%, affected by the typhoon and the lingering impact of the end of the 'de minimis' exemption for e-commerce entering the European Union. Chargeable weight from mainland China to Europe fell 8% year on year, while Hong Kong to Europe dropped 29%.

Traffic from MESA to Europe declined 11% week on week, with chargeable weight falling from most origins in the region by mid-to-high single-digit percentages. Sri Lanka was an exception, recording a 15% increase.

Year on year, traffic from MESA to Europe fell 13%, driven by a 62% decline from Dubai and a 4% drop from India. MESA exports to the US declined 1%, with a 23% drop from Colombo and an 8% fall from India offsetting gains from Dubai and Bangladesh of 37% and 15%, respectively.

Global airfreight capacity fell 1% week on week, with a 1% decline from Asia Pacific, MESA and North America. Capacity remained flat from Europe and CSA, while Africa recorded a 1% increase.

Capacity has remained relatively stable since Week 27, from June 29 to July 5, with changes of 1% or -1% in the following weeks and only low single-digit movements across individual regions.

Global average airfreight rates also eased, mainly due to lower fuel costs. The average rate fell from $2.96 in Week 31 to $2.95 in Week 32, after declining from $3 in Week 29.

Rates from Europe increased 1% week on week, while rates from Asia Pacific, CSA and North America remained flat. Rates fell 1% from MESA and 5% from Africa. Despite the recent decline, global pricing remained 22% higher year on year, with increases ranging from 8% from CSA to 48% from MESA.

Spot rates from Asia Pacific to Europe increased 1% week on week, driven by a 6% increase from China and a 3% rise from Hong Kong. These gains offset declines from South Korea, Singapore, Taiwan and Japan.

Spot rates from Asia Pacific to the US fell 3%, with single-digit declines from most origins. Hong Kong recorded a 3% increase, Thailand rose 1% and Vietnam remained unchanged.

The increase in Europe-bound rates from Hong Kong and China, despite the end of the European de minimis exemption, alongside lower transpacific rates from Asia Pacific, indicates that freighter capacity previously used for e-commerce shipments to Europe has shifted to other markets, with the transpacific sector identified as a likely destination.