International air freight volumes increase monthly

The CLIVE data service said volumes were up 8% between June and July, even as capacity fell 20% year-over-year. Although the volume improved in July but still decreased from the same period last year of 26%, 31% and 37% in April, May and June.

The three largest courier service providers - DHL Express, FedEx Express and UPS - all reported strong courier signs in their most recent earnings report. Cargo volumes recovered gradually in the second quarter, according to DHL Express.

Despite declining international sales and volumes as of May 30, FedEx Express plans to "actively pursue opportunities to increase both market share and revenue quality" in its freight services. not your international.

"With freight capacity currently accounting for 75% of total air cargo capacity on the transatlantic route, FedEx capacity remains an advantage," said FedEx chairman and COO Raj Subramaniam during company talks. at the end of June. "Increasing profits internationally is our big priority and Europe is our biggest opportunity."

CLIVE data shows that transport routes are on the rise. In the week to August 2, annual regional dynamic load factor analysis showed that North America to Europe increased 21%, while Europe to North America increased 19%. The increase is likely due to Europe easing COVID-19 restrictions, inventory stockpiling and as UPS observed its need for income - the need for cross-border e-commerce.

The 10% y-o-y increase in CLIVE's regional dynamic load factor analysis for the Asia to Europe and Middle East service in the week to August 2 is probably due to due to the lifting of containment restrictions and cross-border e-commerce.

Trans-Pacific Air cargo volumes increased sharply

What is not included in the CLIVE analysis is the trans-Pacific service. FedEx and UPS expect the service to remain busy and FedEx Express is also hoping to gain market share. Both FedEx and UPS reported sharp increases on this service. FedEx noted that its Asian cargo volumes increased during the quarter to May 30 as demand for a "significantly" recovery after the blockade measures were eased and "belly capacity on passenger airlines continues to be severely constrained" UPS reported in its second-quarter earnings that Asian outbound volumes increased in April, peaking in May and adjusted in June. Overall, the volume of exports to Asia increased 46.8% in the quarter and up double digits for all major regions of the world.

“Our market analyses for July, especially compared to what we were reporting a few months ago, shows the gradual but consistent climb up the slope to recovery for the air cargo market is continuing, ”CLIVE executive director Niall van de Wouw said in a statement. “This is obviously no ‘V’ shape recovery, but even as additional capacity comes into the market with the return of more passenger services, cargo volumes are showing some reassuring resilience."

Despite the return of passenger services, FedEx predicts it will take at least 18 months for overall air freight capacity to return to pre-COVID levels. But that can prove to be optimistic as the COVID-19 pandemic continues to break out globally.

Phaata (Adapted from JOC)