You are here: Home » Areas of Activity » Cargo » Tracker Newsletter » Cargo Tracker December 2011 » Cargo economic snapshot

General economic softening has translated into downward pressure exerted on the air cargo market. It reflects since October that there has been no sign of the usual seasonal uptick in shipment volumes.  Of course the cargo market and CASS volumes in 2011 are following a year of exceptional growth in 2010.

Some leveling off was to be expected after such a strong post-recession rebound.  However, AWBs and FTKs along with other volume measures have all now slipped below the levels of last year. October 2011 vs. October 2010, FTKs as measured through CASS volumes reflect a 10% decline. The cargo market is now clearly shrinking as business confidence slumps and shippers anticipate weaker economic conditions ahead.

Cargo and CASS yields improved significantly in the post-recession rebound of 2010.  However, now that additional capacity alongside stagnant demand is pushing load factors and utilization down, yields per FTK have begun to decline, year end with a projection of 0.5% contraction vs. year end of 2010. Much looser supply-demand conditions on many trade lanes are likely to add to the emerging downward pressure on yields.