After several weeks of growth global airfreight volume dropped -7% in week 18 (April 27 – May 3) compared to the week before as the rush to move flowers in time for Mother’s Day ended and business activity slowed in several countries due to Labor Day. Despite the slowdown in volume and a rise in bellyhold capacity, pricing continued to climb.

Looking at the preliminary results for the full month of April, tonnage jumped +5% year on year (YoY), after dropping -4% in March, while global average rates increased from +12% YoY in March to +28% last month, arriving at its highest level this year at US$3.17 per kg.

With the exception of the Middle East & South Asia (MESA), air cargo tonnage declined week on week (WoW) from all origin regions during week 18. Chargeable weight dropped -9% from Central and South America (CSA) as well as Asia Pacific and Europe, the latest weekly figures from WorldACD Market Data show. The Asia Pacific region saw a convergence of Labor Day breaks with the national holiday in Japan (Golden Week) that weighed on demand.

Tonnage from Asia Pacific to Europe slipped -1% WoW, driven by double-digit declines from Vietnam (-17%) and Japan (-12%), while there was limited growth (+1%) outbound China, Hong Kong and Malaysia. Year on year tonnage on the Asia to Europe trade lane was up +7%, at the same level as the previous week. After three weeks of expansion chargeable weight from Asia Pacific to the US contracted -4% WoW, owing to double-digit drops from Japan, Indonesia and Vietnam, while tonnage from South Korea jumped +10%.

Chargeable weight from MESA to Europe slipped -3% WoW, owing to declines from Dubai (-13%), Bangladesh (-12%) and India (-5%). MESA exports to the US declined -2% WoW, as traffic from Dubai fell -20%, while volumes outbound India slightly increased (+1%) and outbound Sri Lanka jumped by +25%, WoW. Overall MESA origin traffic continued its recovery with a +2% WoW increase in chargeable weight, which was +4% higher YoY.

Airlines responded to the slowdown in demand by reining in freighter capacity, which shrank -2.7% WoW, a reflection of market conditions and the high cost of aviation fuel, which has nearly doubled since the end of February and caused carriers around the planet to cancel unprofitable routes. Despite increases of +2% from Africa and +6% from MESA (where Qatar Airways added about 4,000 tonnes of lift and bellyhold capacity out of Dubai rose nearly +10%), overall capacity was unchanged from Week 17, owing to cuts in CSA, North America and Asia Pacific. Year on year capacity was up +2% for the month of April, despite a -19% shortfall in MESA and flat growth in North America.