WorldACD reported that global air cargo volumes decreased 3.7% year-on-year in December, marking the first single-digit drop since February last year — and providing a reason for "cheer" at the end of 2020.

For the first time since March, there were origin regions showing YoY volume growth, although at a "modest" rate namely the Asia Pacific which increased by 0.2% and North America, which was up by 2.1%.

"December gave reason for cheer, with a worldwide year-on-year (YoY) weight change of only -3.7%, still below December 2019, but the first weight change percentage in single digits since February," WorldACD said in a statement.

In other words: a return to normalcy? Yes and no, as rates per kg continued to show the stunning growth level that made 2020 such an extraordinary year. They increased by more than 80%, from USD 1.80 to USD 3.27, the highest YoY rate increase since May…

"In other words: a return to normalcy? Yes and no," it added, noting the continued upward trajectory of rates.

Overall airfreight rates continued to show "stunning growth" with an increase of more than 80% to US$3.27 per kg, marking the highest growth rate since May 2020, it said.

WorldACD said indications for January 2021 show a "considerable" drop in rates, with weekly yields declining since mid-December to a decrease of almost 10% as of mid-January this year.

Air Cargo shift to freighters from bellyhold cited

Meanwhile, WorldACD also noted the shift to utilizing freighters in moving air cargo last year from the traditional bellyhold capacity which was largely an impact from passenger planes being grounded for most of the year in 2020 due to Covid-19 related travel restrictions.

WorldACD data showed that from key markets, belly capacity decreased by an average of 51% year on year in 2020, while freighter capacity was up by 6% worlwide with Uganda, Korea, Canada, and Chile showing an increase of 50%, 38%, 35% and 28% respectively. 

Some of this difference was offset by lower demand, down by 15% according to the WorldACD report, compared with 2019. This was, however, not enough to stop rates increasing by 66% for general cargo, 46% for special cargo and 43% for express cargo.