In the week in which the holiday season started, global air cargo tonnages have dropped strongly, as is typical for this time of the year, according to the latest analysis from WorldACD.

The air cargo market data provider said despite the weakening trend in air cargo tonnages, this year's decline at the beginning of the holiday season is smaller than last year.

WorldACD noted that the week from December 19 to December 25 showed an overall drop of -11% in worldwide flown tonnages compared with the previous week.

"The decrease in overall chargeable weight is normal for this time of the year as the holiday period begins, with this year's drop smaller than last year (-14%)," its analysis said.

The average rates declined by -2% compared to the previous week, which is slightly steeper than during the same period last year and a continuation of the sliding rate levels that we have witnessed since the beginning of the month.

Comparing week-on-week with the preceding two weeks (2Wo2W), tonnages decreased -7% below their combined total in weeks 48 and 49, while average worldwide rates declined -3%, combined with a -3% decrease in capacity – based on the more than 400,000 weekly transactions covered by WorldACD’s data.

In this two-week period, tonnages were down between all regions, except from the Middle East & South Asia to the Asia Pacific (+5%) and intra-Asia Pacific (+3%). Most significant decreases were recorded from Asia Pacific to Europe (-18%), from North America to Europe (-16%) and from Europe to Africa (-16%). 

Rate down, volume, capacity down

"Comparing the overall global market with this time last year, chargeable weight was down 20% compared with the equivalent period in 2021, at 3% lower capacity," WorldACD said in its report.

It added that tonnages ex-North America are down by 28%, and ex-Asia Pacific tonnages were 26% below their strong levels this time last year.

There were also double-digit percent year-on-year drops in tonnages outbound from the Middle East & South Asia (down 17%) and Europe (down 11%).

Meanwhile, WorldACD noted that capacity reduced compared to the previous year and is down almost from every region: Asia Pacific (decline of 11%), Central & South America (down 8%), Europe (down 4%) and North America
(down 3%).

Whereas from Africa (up 15%) and Middle East & South Asia (up 3%), capacity remained above its levels this time last year.

"Worldwide rates are currently 28% below their unusually elevated levels this time last year at an average of US$3.14 per kilo, despite the effects of higher fuel surcharges, but they remain significantly above pre-Covid levels," the report said.