A repetitive story of stagnant volumes and falling yields

WorldACD Market Data said August showed a year-on-year (YoY) volume increase of just 0.9 per cent, while month-on-month (MoM) US$-yields fell again, this time by 1.2 per cent.


WorldACD


Noting the air cargo story of 2015 – stagnant volumes and falling yields – threatens to become repetitive, WorldACD Market Data said August showed a year-on-year (YoY) volume increase of just 0.9 per cent, while month-on-month (MoM) US$-yields fell again, this time by 1.2 per cent ( yields in Aug 2014 decreased by 0.8 per cent vs July 2014).

One bright spot: Africa and Latin America, the smaller regions in terms of air cargo, bucked the trend. Africa was clearly the region-of-the-month, showing a volume increase in air exports of almost 10 per cent YoY coupled with a MOM yield drop of only 0.2 per cent. Latin America was positively in the news, for the first time in many months with MoM yields increasing by 3.5 per cent for outgoing and by 1.0 per cent for incoming traffic. Unfortunately, it was one of two regions recording a (small) negative volume growth YoY; the other one was North America, WorldACD said.

“Falling yields ought to be good news for shippers and forwarders, yet they seem to take the view that – given the present low fuel cost – prices are not coming down fast enough. Airlines may well take a different view, viz. that the worldwide USD-yield drop of 18 per cent over the past year properly reflects lower fuel cost, since fuel cost had become 1/3 of their total cost before the roughly 50 per cent drop in oil prices in the past year… Whatever the case, airlines must have welcomed the small MoM USD-yield increase in August in more than half of the interregional markets,” WorldACD said pointing to: