July was again a month with double digit year-over-year (YoY) growth.
Overall YoY volume growth was 11.8% worldwide, caused by above average growth from the origins Europe (14.2%), MESA (13.5%) and Asia Pacific (13%), and below average figures for other regions. The southern hemisphere origins of South America and Africa did rather poorly (3.6% resp. 2.6% growth only). MESA (Middle East & South Asia) and Asia Pacific were the fastest growing destination areas (14.9% resp. 13.3% increase). General cargo continued to increase faster (+12.6%) than the other product categories (+9%), with the exception of pharmaceuticals (+17.6%).
In terms of yields, July saw a considerable worldwide YoY-yield increase, +7.8% in USD. The Asia Pacific region contributed heavily to this impressive figure by scoring an even more impressive 13.2% USD-yield increase for business originating in the area. Month-over-month (MoM), however, worldwide yields did not increase: measured in USD they remained stable, in EUR they lost 2,3%. Yield-wise, North America was a good destination to send goods to: whilst incoming volume remained the same as in June, USD-yields for business to the region were slightly better MoM, but increased by 15.6% YoY.
The surprising July-developments were related to China. For the first time this year, the world’s air cargo engine sputtered a bit (relatively speaking, that is). The origin China saw double-digit growth for every month (averaging 19%), but not for July (8%). It grew faster than the world market every month, but not in July. Air cargo needed the compensation of high growth from places like Hong Kong, Germany, India, the United Kingdom, Singapore and the Netherlands, to achieve its July-growth of 11.8% YoY. By the way, incoming traffic in China continues to boom (+21% YoY).
The China situation is also reflected in our DTK measure for July. When the %-growth in DTK’s (Direct Ton Kilometers) surpasses the %-growth in volume, this means an increase in the average distance between origin and destination of shipments. In the first half of the year, DTK-growth indeed easily outpaced volume growth, but hardly so in July (DTK +11.9% vs. volume +11.8%). Given the mostly long-distance character of air cargo ex-China, the country’s relative weakness contributed to this deviation from the trend.