The steep fall in air cargo demand is slowing down claimed the latest figures from WorldACD. The latest figures show that air cargo demand registered a decline of 4.2% in the month of July almost a 50% improvement from the 8.9% fall in the month of June.
For international markets long weekend holidays have been justified as one of the reasons of slow down in the decline. WorldACD also cautioned of snowballing of ongoing US-China trade war into worse for the air cargo industry.
“Upheaval in international relations has been the order of the day this year. And even though the worst effects of the US-instigated trade war(s) may still have to reach air cargo, the general sentiment in the world is obviously not doing the industry a whole lot of good,” WorldACD said in its monthly report.
“Now that consumer goods have also been targeted for tariff increases, air cargo figures as from August may well take an even deeper dive than shown so far,” added the report.
WorldACD added that there were variations in performance when analysing figures by region and by cargo sector. It said that special products continue to outperform general cargo, with the former improving by 3.5% year on year in July while the latter declined by 7.4%.
“Not surprisingly, we observe a growing interest in the air cargo sector to understand in detail the market dynamics in the various special cargo categories,” WorldACD said.
On regional performance in terms of US dollar revenues in July: “Africa +1.3% but South Africa -5.4%, Latin America -0.9% but Brazil -18.1%, Europe –14.8% but Germany –22.5%, Middle East and South Asia -4.8% but Bangladesh -25.5%. It should be noted that jet fuel prices in July were 10% lower than a year earlier.”