The downward trend in air global cargo tonnages has continued into early June, with average rates also continuing the year-long pattern of slow year-on-year (YoY) decline, according to WorldACD Market Data.

In its latest weekly update, the air cargo market data provider said figures for week 22 (May 29 to June 4) show a decrease of -6% in tonnages and -1% in average global air cargo prices, week on week (WoW) after tonnages showed an increase of +3% in the last full week of May.

This is based on the more than 400,000 weekly transactions covered by WorldACD's data.

"As WorldACD reported last week, data on global tonnages for the full month of May show a decrease of -6% compared to the previous year, an improvement compared to the first quarter (-11%, year on year) and April (-10%, year on year)," it said.

Comparing weeks 21 and 22 with the preceding two weeks (2Wo2W), overall tonnages decreased by -1% versus their combined total in weeks 19 and 20, with slight changes in capacity (+1%) and average worldwide rates (-1%).

The air cargo market data provider said at a regional level, all origin regions showed a downward trend in tonnages on a 2Wo2W basis, except for ex-Middle East & South Asia (+6%) and ex-Asia Pacific (flat). 

Source: WorldACD

"Region to region, notable increases can be observed outbound Middle East & South Asia to Europe (+13%) and outbound Asia Pacific to Middle East & South Asia (+8%)," WorldACD said.

It added that significant drops in air cargo tonnages could be reported on the flows outbound from North America to Asia Pacific (-7%) and Europe (-6%) and outbound from Central & South America to Europe (-8%) and North America (-7%).

Meanwhile, it said that average pricing decreased slightly, on a 2Wo2W basis, from all of the main origin regions, with rates outbound Europe to Asia Pacific showing the most notable change (-4%).

Volumes down, capacity up

WorldACD said comparing the overall global market with this time last year, chargeable weight in weeks 21 and 22 was down -8% compared with the equivalent period last year.

It noted that the most-notable changes include a double-digit percent decrease in year-on-year (YoY) tonnages ex-North America (-18%), ex-Europe (-9%) and ex-Asia Pacific (-6%), while traffic ex-Middle East & South Asia is up +6%, YoY.

 
Overall capacity has increased by +11% compared with the previous year, with double-digit percentage increases from all regions except North America (+8%) and Central & South America (-12%). The most notable increase was ex-Asia Pacific (+29%).
 
"Worldwide average rates are currently -38% below their levels this time last year, at an average of US$2.43 per kilo in week 22, although they remain significantly above pre-Covid levels," WorldACD said.