First-quarter air cargo volumes on the up, but yields struggle

Air cargo volumes rose 4.8% this year in the first quarter, according to the latest data from WorldACD.

But yields in euros struggled with currency valuations. The consultancy noted: “We need only point to the fact that the YoY yield increase in Q1 (worldwide) was 18.6% when measured in US$, but only 2.7% when expressing it in euros…A similar pattern is seen when comparing yields in US$ with yields in almost any other major currency.”

It continued: ”With a weak dollar and a strong euro, one would expect incoming business in Europe and outgoing business from North America to grow fastest. That is precisely the case.”

While Drewry noted that air fright rates slipped in March, Freightos, meanwhile, is anticipating a rise in air freight rates as soon as next week. “With the summer season approaching, rates are expected to rise next week. For the past five weeks, average air freight rates have been very stable at $2.90-$5/kg (China-US), $2.80-$4.50/kg (China-Europe) and $1.80-$2.70/kg (Europe-US).