Air cargo revenues from the Americas and Europe have been under pressure throughout this year despite overall market growth. Data from WorldACD highlights the challenges airlines face with rate declines outweighing increases in cargo volumes. This dynamic is causing revenue losses in key regions. The global air cargo market remains buoyant. It is driven by strong demand and increasing chargeable weight.

The first nine months of 2024 showed that cargo volumes grew significantly in certain regions. However, rate declines led to reduced cargo revenues for airlines. This especially affected those operating from the Americas and Europe. However, the Middle East, South Asia, Asia Pacific, and Africa experienced positive growth, benefiting from improved cargo revenues.

Key Points:

• Rate and Volume Dynamics: Air cargo volumes are rising from the Americas and Europe. However, the declining rates are causing a dip in airline cargo revenues.
• North America: Chargeable weight increased by 4%, but air cargo rates fell by 15%, leading to a 12% revenue drop.
• Europe: Chargeable weight rose by 8%. However, a 22% fall in rates led to a 16% decline in airline cargo revenues.
• South America: Airlines saw a 6% increase in chargeable weight. However, a 6% fall in rates offset this gain. As a result, revenue gains were eliminated.
• Global Growth: Overall, the air cargo market has grown. There is a 12% increase in weight. There is a slight 2% decline in rates. Together, these changes have boosted global cargo revenues by 10%.
• Strong Regional Performance:
  • The Middle East & South Asia (MESA) region saw an extraordinary 62% increase in airline cargo revenues.
  • Asia Pacific cargo revenues rose by 23%, while Africa saw a 9% increase.
• General vs Special Cargo: General cargo volumes grew by 13% year on year. They outpaced special cargo, which rose by 10%. This shift has been attributed to the rapid rise of cross-border e-commerce.
• Recovery Trends: Airlines in Central and South America reported a 7% increase in cargo revenues by September. Meanwhile, in North America, revenues remained flat, and in Europe, the rate of decline had slowed to 2%.
• Spot Rates: Airfreight spot rates globally reached their highest level in early October. Ongoing demand was boosted by global trade and economic activity.
• E-Commerce Impact: Cross-border e-commerce has grown significantly. This growth has driven general cargo volumes. Much of the e-commerce traffic is classified as general cargo rather than special cargo. This shift changes the traditional growth patterns in the air cargo market.

Regions like the Middle East and Asia Pacific are seeing positive growth. However, airlines operating from Europe and the Americas continue to struggle with falling rates. Disruptions like US port strikes could add additional pressure to the airfreight industry. This situation may keep demand strong into the future.