WorldACD reported that cargo volumes for 2019 remained muted in December as the impact of the trade war between the US and China dragged on to the last month of the year.

The air cargo market data provider said worldwide air cargo decreased by 1.7% year on year in December ⁠— with general cargo dropping by 4.2% while special cargo increased by 3.3%.

"The results for the full year 2019 were not impressive: worldwide revenue, measured in USD, fell by 11.7% compared to the top year 2018, while it did not grow compared to 2017 either. The main reason was a year on year yield drop of 7.6%, as total weight fell by 4.4%," WorldACD said.

It noted that high-tech & other vulnerable goods increased by 13.3% and pharma & temperature controlled goods rose by +12.6%. In terms of perishables, WorldACD also said flowers did best, recording a 3.5%, while fruits & vegetables dropped by 7.9%.

"Although pharmaceuticals and vulnerable goods (including High-tech) both showed growth ... , their yield drops – though not as steep as in general cargo - were a cause for concern for the airlines," it added.

Europe saw biggest drop

WorldACD said the origin Europe took the hardest hit in 2019: it lost more than 16% of its revenues of the previous year, with Germany accounting for half of Europe’s woes.

The smaller regions, it noted, like Africa and Latin America fared better than the larger regions in the Northern hemisphere. While in Asia Pacific and Europe outbound was slightly better than inbound, and the opposite was the case for North America.

"This brings us to the main story of the past year: the influence of Trump’s trade wars on the world’s trade flows," the air cargo market data provider said.

"Many have attributed (part of) the disappointing 2019-results for air cargo to the worsening USA - China relationship, but trying to establish where the consequences of the trade war were felt most, is not all that easy," it added.

It noted that total China inbound dropped by 6%, but China outbound increased by 2.7% year on year in total, even increasing by 2.8% to Europe, and dropping by only 0.3% to the US. 

The US, meanwhile, saw total outbound decrease by 5.3% and lost less than that in its air cargo business to China, dropping 4.9%. Cargo to Europe also declined by 5.7% year on year as inbound shipments dipped by 4%.