Volume well up, yield down slightly in 2014

According to WorldACD, worldwide cargo volume was up 6.4% in 2014, while yield fell 1.5% compared to the previous year.

Netherlands-based air freight data specialists WorldACD published their summary of worldwide air freight performance for December and the full year 2014. As shown in the chart below, cargo volume in December (measured by chargeable weight) was up 6.7% y-0-y, very much in line with the full-year growth of 6.4%.

Yield, on the other hand, was down 5.6% in December, but as WorldACD points out, this decline is not what it appears at first glance. First, overall yields were strongly influenced by a drop in fuel surcharges in December 2014 compared to December 2013, and (in theory, at least), fuel surcharges are passed through without significant bottom-line effect. And second, overall yield was heavily impacted by the worsening exchange rate for the euro against the US dollar. In some regions, and on some trade lanes, yields did not suffer as badly. Indeed, on lanes originating in North America and Africa there were y-o-y gains of 7.1% and 6.9%, respectively.

We expect IATA to publish its worldwide cargo summary for December and 2014 within a few days, and we expect the full year gain reported by IATA to be less than the 6.4% reported by WorldACD, but still reasonably good.