Global tonnages have dropped sharply in the first week of May, due to the May 1st public holiday in most countries of the world, after a more or less stable picture in last week's report, according to the latest weekly figures from WorldACD Market Data, with rates only slightly impacted.

Figures for week 18 (May 1-7) showed a drop of -10% in tonnages and a decrease of -2% in average global air cargo prices, week on week — based on the more than 400,000 weekly transactions covered by WorldACD's data.

"Comparing weeks 17 and 18 with the preceding two weeks (2Wo2W), overall tonnages decreased by -4% versus their combined total in weeks 15 and 16, and average worldwide rates remained stable, with flat capacity," the report said.

Global tonnages on a downtrend

WorldACD said at a regional level, almost all origin regions showed a downward trend in tonnages, with Asia Pacific, Europe and Central & South America being impacted by the May 1st holiday.

The most-notable decreases can be observed between Asia Pacific and Middle East & South  Asia (westbound -15%, eastbound -19%), between Europe and Asia Pacific (westbound -6%, eastbound -11%), between Europe and Central & South America (northbound -24%, southbound -9%) and outbound Middle East & South Asia to Europe (-22%).

It added that positive developments in tonnages can be reported on outbound Central & South America to North America (+25%), driven by the flower exports ahead of Mother's Day on 14 May, and outbound Europe to Middle East & South Asia (+6%). 

In terms of pricing, WorldACD noted that on a 2Wo2W basis, average rates show a positive trend ex-Central & South America to North America (+6%) and to Europe (+7%), and from Middle East & South Asia to Europe (+4%); for most other major air cargo lanes, rates have been stable or decreasing, with the most significant drop seen from Europe to Africa (-7%).

Capacity up, rates down year-on-year

Comparing the overall global market with this time last year, WorldACD said chargeable weight in weeks 17 and 18 was down -9% compared with the equivalent period last year. Most notable are the double-digit percent decreases in year-on-year tonnages ex-North America (-21%) and ex-Europe (-13%). 

Meanwhile, overall capacity has increased by +13% compared with the previous year, with double-digit percentage increases from all regions — except from North America (+8%), and Central & South America (+2%). The most-notable increases were ex-Asia Pacific (+31%), ex-Africa (+14%) and ex-Europe (+13%).

Worldwide rates are currently -36% below their levels this time last year, at an average of US$2.52 per kilo in week 18, despite the effects of higher fuel surcharges, although they remain significantly above pre-Covid levels, the report added.