WorldACD, Drewry June figures snap dismal picture of 1H2019  

Following the challenging political and economic conditions experienced over the first half of 2019, WorldACD released its report indicating a decrease of 9% in international airfreight volumes year-over-year for the month of June. Meanwhile, Drewry said airfreight prices are continuing to rise. 

According to WorldACD, airlines suffered a y-o-y decrease of almost 15% in revenue, combined with a decrease in y-o-y yield of 6.3% in USD. Only high tech, pharmaceuticals, flowers and fish and seafood saw y-o-y growth for the month of 3.7%, 5.2%, 4.6% and 4.5%, respectively. However, WorldACD also said that high tech and pharmaceuticals saw yields fall more than volumes increase for the month. 

Drewry’s East-West airfreight price index was also released this week, showing rates increased 1%, or 2 cents, from the previous month in May, to reach $2.54 per kilogram, following a fall of 8 cents from April to May. Prices for June 2019 remain 4% lower than the same month the year prior. Drewry said it expects rates to remain equable in July. 

While last month, WorldACD implored the air cargo industry to maintain a more “realistic” view of the market given the extraordinary growth in 2018, the firm now says that the first half of 2019 actually saw a worldwide decrease of 0.6% when compared to the same period in 2017. North America was the exception among the larger regions, as it saw an outbound weight growth of 2% as compared to first half of 2017. 

While the macro-economic environment saw a contraction for the first half of 2019 compared to the first half of 2018, there was still some growth in sub-regions’ volumes.  Australasia, East Africa, Northern Europe, North Africa and Central Asia saw growth of 0.4%, 2.6%, 10%, 3% and 20.1%, respectively, y-o-y for the period. Of the larger regions, only the origin Africa showed a modest y-o-y increase in volumes of 1.2%. 

To sum up the experience for air cargo this year thus far, WorldACD said “the further we get into 2019, the poorer the results get.” 

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Chelsea Toczauer

Chelsea Toczauer is the Associate Editor of the company’s daily news and monthly magazine Air Cargo World. She holds two BAs in International Relations and Asian Languages and Cultures from the University of Southern California, as well as a double accredited US-Chinese MA in International Studies from the Johns Hopkins University-Nanjing University joint degree program. Chelsea speaks Mandarin and Russian.