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WorldACD: Air cargo volumes bounce back after Golden Week holiday

Air cargo tonnages out of Asia quickly rebounded following the Golden Week holiday, while volumes from other origins were under pressure. Figures from WorldACD show that air cargo volumes increased by 2% week on week in the seven days running to 18 October. The increase was fuelled by a 9% week-on-week increase in exports from Asia Pacific, which the data provider described as in "sharp contrast" to declines elsewhere. "The retreat was most pronounced out of North America (-5%), which can be partly attributed to national holidays in Canada (Thanksgiving) and US (Columbus Day/Indigenous People's Day)," WorldACD said. "Chargeable weight shrank 4% from Central and South America (CSA), also partly explained by 12 October national holiday celebrations, 3% out of the Middle East and South Asia (MESA) region, 2% out of Europe and 1% from Africa." WorldACD figures show that tonnages from Asia Pacific to the US were up 10% against a week earlier, while to Europe there was a 13% improvement. Tonnages from Asia Pacific to the US increased from all Asia origins, other than Japan, led by Hong Kong, which was up 27% and China, which improved by 18%. Meanwhile, compared with a year earlier, Asia Pacific-US volumes for the week are up 14%, which "reflects the ongoing strength of AI-related traffic crossing the Pacific". To Europe, South Korea led the way with a 34% week-on-week improvement, followed by China up 22%, Singapore 16% and Hong Kong 11%. "Volumes out of Vietnam, Japan and Malaysia to Europe retreated," WorldACD added. However, compared with last year, Asia Pacific to Europe volumes are down 16% year on year. "The decline was most pronounced out of Hong Kong (-32%), due to the European Union's moves to curtail imports of e-commerce parcels," WorldACD said. "Volumes from China and Vietnam were 12% and 10% lower than a year ago, while South Korea (+14%) was the only origin showing a double-digit year-on-year increase in chargeable weight to Europe." Rates on the rise Meanwhile, WorldACD figures show that airfreight rates were up week on week from all regions other than Africa in the week ending 18 October. Rates rose 4% out of Asia Pacific, 3% from CSA, 2% from Middle East South Asia and 1% from both Europe and North America. From Africa, there was a 4% fall. Looking towards the peak season, WorldACD commented: "The strength of AI-related flows has prompted predictions of a strong peak season ahead in the transpacific arena. "From Asia Pacific to Europe, the outlook is more uncertain in view of the €2 handling fee that will be applied to non-EU e-commerce imports per 1 November, in addition to the flat €3 customs duty per item that has already been in effect since 1 July 2026 for low-value consignments up to €150."

Boeing 777 production halted by supplier dispute

Boeing was forced to pause production of its 777 and 767 freighters due to a dispute with a parts supplier, according to Reuters. Last week, the news agency reported that the airframe manufacturer had been in dispute with the supplier of the fixed trailing-edge rib kit used on its 777 and 767 aircraft. While the dispute was resolved at the end of September, aircraft production has yet to be resumed according to Reuters contacts. Air Cargo News has asked Boeing to comment on when it expects production to resume. The report said that the dispute was costing Boeing around $6.5m per day and work on two 777 aircraft had been affected, one of which is destined for FedEx. Boeing is reportedly bringing production of the component in-house to reduce its dependence on a single external supplier. According to its latest orders and deliveries report, Boeing has 38 outstanding orders for 777 freighter aircraft, although six of these were placed by Volga-Dnepr UK. Other customers waiting for delivery of the model include; China Airlines (2), China Southern Cargo (2), Emirates (3), Ethiopian Airlines (2), FedEx (7), Saudia (4), Silk Way West (2), unidentified (10). There are nine unfilled orders for the 767-300F: UPS (1) and unidentified (8). While the 767 freighter can no longer be ordered, Boeing was recently granted an emissions exemption for its 777 freighter that will enable the aircraft manufacturer to continue selling them beyond the end of 2027. The decision by the FAA means that Boeing, which filed its emissions exemption request in December and had requested that the exemption be approved by 1 May, can sell 35 more 777Fs that will be be eligible for a Certificate of Airworthiness. The delay in production comes as the air cargo market faces a shortage of widebody capacity as demand continues to soar and production of new cargo aircraft was already under pressure. Boeing's 777 freighter is now the most widely operated freighter in the world, according to data supplied by the US aircraft manufacturer.

Pressure remains on China-EU e-commerce volumes as new charge looms

China's e-commerce volumes continued to decline in September, while the European Union is set to add another charge for low-cost packages being imported into the bloc in November to pile on the pressure. Figures from consultant Aevean show that low-value e-commerce tonnes flown from China to the EU were down by 50% year on year in September. This has led to an overall decline in low-value Chinese e-commerce air exports of 4% year on year over the first nine months of the year, while in September the decline reached 19% compared with a year ago. While volume declines to Europe led the way in September, there was also a 5% fall from China to the rest of the Asia Pacific region, 4% to North America and 13% to the Middle East and South Asia. Aevean managing director Marco Bloemen said that the 50% drop-off to Europe reflected the EU's decision to add a €3 duty per product type for each parcel with a value of less than €150 being imported into the bloc in July. Bloemen pointed out that a second €2 handling charge is set to be added on 1 November. Dutch advisory firm Holdwise said the €2 charge will also be by product type. As an example of how the extra charge will push up the cost of e-commerce goods, Holdwise calculated the cost of bringing in a China-made T-shirt and watch directly from China compared with stock held in the Netherlands. Its calculations show that a package containing a watch and T-shirt would cost around €9.50 more to process directly from China. "As a parcel from outside the EU, [it is] €19.50 per order. That is €6 duty, €4 handling fee, €7 for postage and customs clearance, and €2.50 for storage and packing," the company explained. "From stock in the Netherlands, [it is] €10.00 per order. That is €2 in normal duty, €0.50 for seafreight and clearance, €2.50 for storage and packing, and €5 for delivery in the EU." Holdwise added that in September and August, Dutch Customs reported about 70% fewer e-commerce declaration lines compared with the same months a year earlier.