The decreasing trend in global tonnages accelerated in the second full week of August, mainly driven by Europe in the midst of its holiday season, while rates remained stable or were even slightly positive, according to the latest figures from WorldACD Market Data.

In its latest analysis, the air cargo market data provider noted that figures for week 33 (August 14-20) show a 5% drop in tonnages compared with the previous week, while average worldwide air cargo prices remained stable, week-on-week (WoW).

Comparing weeks 32 and 33 with the preceding two weeks (2Wo2W), overall tonnages dropped by -5% versus their combined total in weeks 30 and 31, while worldwide rates went up slightly (+1%) and capacity was slightly down (-1%).

WorldACD said at a regional level, decreases in tonnages (2Wo2W) were down most strongly on flows ex-Europe (-8%) during the vacation period, most notably to Asia Pacific (-12%), North America (-8%) and Africa (-7%).

Furthermore, flows ex-Middle East and South Asia were down by -6% overall, mainly to Asia Pacific (-8%) and Europe (-6%).

Also, Asia Pacific showed a notable decrease of -5% overall, especially in Europe (-8%) and intra-Asia Pacific (-7%).

 Source: WorldACD

It said that volumes dropped in both directions between Europe and Central & South America (-5% northbound, -9% southbound), and ex-North America into Central & South America (-8%).

There was only one increase recorded on flows ex-Asia Pacific to Middle-East & South Asia (+4%).

On the pricing side, the air cargo market data provider said the average global rates increased slightly (2Wo2W), along with prices from the main origin regions.

But there were some noteworthy increases in pricing on certain lanes, ex-North America to Asia Pacific (+6%) and ex-Central & South America to Europe (+5%).

Source: WorldACD

Tonnage, air freight rates down year-on-year

"Comparing the overall global market with this time last year, chargeable weight in weeks 32 and 33 was down -4% compared with the equivalent period last year (YoY)," WorldACD said.

It noted that double-digit percentage decreases in tonnages were recorded ex-North America (-17%) and ex-Europe (-11%). However, notable increases were observed in ex-Asia Pacific (+4%) and ex-Middle East & South Asia (+5%).
 
"Overall capacity has increased by +8% compared with last year, with capacity ex-Asia Pacific up by a noteworthy +23%," the report added.

Other significant YoY capacity increases can be observed in ex-Middle East & South Asia (+12%) and ex-Europe (+7%), while a significant decrease was recorded in ex-Central & South America (-7%).
 
"Worldwide average rates are currently -36% below their levels this time last year, at an average of US$2.29 per kilo in week 33, although they remain significantly above pre-Covid levels (+34% compared to August 2019)," WorldACD said.