WorldACD: May another disappointment for air cargo
Air cargo volumes grew by an anemic 0.5 percent in May 2016, measured against the previous year’s May figures, according to WorldACD (see chart above). In a report released this week, the market data company noted significant diversity in performance, with the origin North America market tumbling 4 percent, year-over-year, while the Middle East/South Asia (MESA) region grew by 4 percent, y-o-y. Yield in U.S. dollars fell by 1.9 percent, compared to April.
So far for 2016, Europe’s origin market gained roughly the same amount of kilograms in cargo that North America lost during the first five months. Worldwide, U.S. dollar yields declined by 16 percent, y-o-y, however some of the larger traffic flows still generated high yields, including Bogota-to-Miami and Quito-to-Miami.
WorldACD also surveyed the market share of world’s top 100 air cargo forwarders, measured by chargeable weight produced in 2015. Grouped by their origins, they collectively handle 58 percent of the worldwide air cargo market. The group consists of 37 forwarders from the Asia-Pacific region, 27 from Europe, 17 from the United States, 11 from MESA and four each from Africa and Latin America.
The 20 largest of the aforementioned forwarders surveyed include 12 European, four Japanese, three American and one MESA forwarder. These carriers hold a joint market share of 43 percent. The top 10 claim an aggregate market share of 35 percent, led by DHL with 8.5 percent.
The report noted that the combined market shares of the world’s top 20 varied by market. In Germany, Japan, the U.S. Midwest, France and Singapore, the markets are concentrated, with shares of the largest 20 ranging between 60 and 67 percent. Alternatively, in dispersed markets, such as India, South East China and the United Arab Emirates (UAE), the world’s top 20 control a far smaller combined share of less than 30 percent. In these markets, local or regional forwarders that failed to make the largest-100 list have shares of 60, 64 and 58 percent, respectively. In India, the market is especially diverse, with the largest forwarder controlling a market share of barely 5 percent.
The largest forwarders, WorldACD added, will likely gain even more market share in the near future. “Industry experts see further consolidation among forwarders, through acquisition or co-operation,” the report concluded.
