Air freight rates continue to rise

There are patterns underlying the trends in air freight demand and rates. Even within an overall trend of rising demand, for example, we still expect to see traffic peak during “peak season,” then subside through December, January, and February, rise to a brief mini-peak in the spring, then subside again slightly in the summer until […]

• David Harris
• March 29, 2018

Korean Air Cargo reports traffic, yields up significantly in Q317

Incheon-headquartered Korean Air Cargo reported Q317 cargo yields (in US$) up 12.3% y-o-y, on traffic that was 7.5% higher. Capacity rose 4.3% during the same period, pushing load factors up 2.4 points, to 78%. Overall tonnage rose 10%, driven primarily by higher international traffic. Outbound tonnage ex-Korea was up 10%. With increasing cargo revenues, the […]

• Charles Kauffman
• November 16, 2017

The good times keep rolling in July

Two weeks ago, when we analyzed the just-published July results from some of the world’s big carriers and airports, we predicted that when IATA and WorldACD published their detailed analyses of cargo traffic worldwide at the beginning of September, we would see air freight demand growth in July of 11% or 12%, year-over-year. We are still […]

• David Harris
• September 1, 2017

Air cargo yield growth strengthens in June

In mid-July, when we looked at the early reports of June cargo data from some of the big carriers, airports, and handlers, we felt confident in predicting that when IATA and WorldACD published their complete worldwide summaries, they would show year-over-year air freight demand continuing to grow at a double-digit rate. Perhaps not quite at […]

• David Harris
• August 1, 2017

Freight rates — good news and bad.

Air freight rates on major east-west routes rose slightly in August, according to UK-based freight market analyst Drewry. It’s a good news/bad news situation, and we’ll start with the good news. In its monthly East-West Airfreight Price Index, Drewry showed rates up 0.7 points in August, continuing a trend of rising rates that began six […]

• David Harris
• September 29, 2016

Top cargo carriers change their strategies

The top three international cargo carriers in 2015 were Emirates, Cathay Pacific, and Lufthansa. One might expect, given that all three have been at, or near, the top of the rankings for many years, that their approach to the business would be stable. Your business model has made you an industry leader, so why make […]

• David Harris
• July 21, 2016

April traffic… and thoughts on yield

The International Air Transport Association released its air freight market analysis for April 2016, showing a 3.2% year-over-year increase in worldwide cargo traffic (in freight tonne kilometers flown). International cargo traffic, which accounts for 87% of total traffic, was up 3.1%. For the first four months of 2016, IATA reported total traffic down 0.7% and […]

• David Harris
• May 31, 2016

Traffic growth slows in June

The International Air Transport Association released its air freight market analysis for June 2015, showing an overall 1.2% year-over-year increase in worldwide cargo traffic (in freight tonne kilometers flown). On a regional basis, results varied from a 3.3% y-o-y decline in traffic reported by North American carriers, to a 15.3% gain for carriers in the […]

• David Harris
• August 5, 2015

UPS 2Q: Revenue down, profit way up

UPS reported second-quarter net income up over 170% y-o-y to $1.23 billion, as total revenue declined 1.2% to $14.09 billion. Reported operating income for the quarter was up over 160% to $1.96 billion. Of course, the huge gains in reported operating income and net income shrink substantially when adjusted for a major one-time charge taken […]

• David Harris
• July 29, 2015

Air freight rates decline in June

UK-based shipping consultancy Drewry published its analysis of air freight rates on major east-west trade lanes in June, and the data show the expected continuing rate decline. Drewry reported its East-West Air Freight Price Index declined by  1.1 points in June to a reading of 88.7, bringing the index down to its lowest level since it […]

• David Harris
• July 24, 2015