WorldACD: October numbers show slower growth but bigger volumes

Year-over-year airfreight volume growth in October extended a period of decline that began in September, but the industry remains as strong as ever, with volumes during the month getting a big boost from Europe, to and from North America, and to Central and South America, and with pharmaceutical volumes up 19 percent, according to WorldACD.

Cargo volumes rose 6.9 percent, y-o-y, in October, as reported to WorldACD, while revenues grew at an astonishing 20.5 percent rate, y-o-y – largely thanks to higher fuel costs and yield growth from Europe, the Middle East and South Asia. While the month’s volume figures support the consensus that the double-digit increases from earlier in the year have wrapped up, growth rates remain well above world trade growth for the 14th consecutive month.

Regionally, the strongest y-o-y volume growth emerged in the Atlantic South and Midwest regions of the United States, as well as in Vietnam, Australia, Japan and the United Kingdom – all of which posted double-digit growth rates. Pharmaceutical transport was up 19 percent, y-o-y, by volume, while volumes for high-tech and vulnerable goods rose by more than 11 percent.

WorldACD’s outlook for the rest of the year is optimistic, with the group noting that “the records set in October are almost certain to be broken when November figures [come] in.” Further, once all the results for 2017 come in early next year, WorldACD expects direct tonne kilometers (DTKs) to surpass volume growth by 1 percentage point, meaning that “longer-haul markets in 2017 continue to grow more than shorter-haul.”