Air cargo volumes out of Central and South America (CSA) have taken off in the last few weeks of April ahead of Mothers’ Day celebrations in North America.
Analysis from WorldACD shows that air cargo volumes from CSA increased by 17% week on week in week 17, following on from a rise of 14% in week 16.
The data firm’s figures show that the largest increase was in demand to the US and Canada, with volumes up 48% on a two-week basis.
“Although around 90 countries or territories around the world celebrate Mother’s Day on the second Sunday in May, North America is by far the most important destination market for flowers shipped by air from CSA,” WorldACD said.
“The spike in CSA to North America tonnages was also accompanied by a 12% rise in rates (two weeks on two weeks) – the only significant rates rise among any of the main intercontinental lanes measured by WorldACD’s data. And that drove up total air export rates from CSA by 6%.”
The surge in demand from CSA helped push overall air cargo volumes for week 17 up by 5% compared with the previous week, after gaining 4% in week 16.
The increases “more or less” wiped out the “week-on-week (WoW) declines of -2%, -4% and -6% in the previous three weeks caused by a combination of the effects of various holiday periods such as Easter and Eid”.
Worldwide rates dropped back by 1% in week 17 to $2.47 per kg and are fractionally below last year’s $2.52 per kg.
“Compared with last year, total worldwide tonnages in weeks 16 and 17 were up by 9%, driven by year-on-year growth of 15% from Asia Pacific origins, 11% from Middle East & South Asia (MESA) origins, 10% ex-Africa, and 8% from CSA, with more-modest rises from Europe (5%) and North America (3%), as all the main world origin regions recorded YoY growth,” World ACD said.
“For the full month of April, total worldwide tonnages were up by 9% compared with last year, preliminary figures show. This increase is slightly lower than in the first quarter (11%).”
One of the main volume growth areas this year has been volumes out of Dubai to Europe due to rising sea-air demand.
WorldACD said this trend had softened over the last few weeks due to Eid, but had “bounced back extremely strongly” in week 17 with tonnages up 255% year on year, although the comparison period last year was described as “slightly soft”.
“Nevertheless, although there are some suggestions that shippers are adapting to longer container shipping transit times from Asia to Europe, and average container vessel reliability is returning towards pre-crisis levels, there are no signs yet of the current highly elevated Dubai-Europe air cargo traffic levels waning,” WorldACD said.
Air cargo demand growth slows in April while attention turns to Q4
