The company handled 711,000 cubic metres of less-than-container-load (LCL) cargo in August, down 7% from a year earlier and 2% from July, according to its monthly operational update.
LCL refers to shipments that are too small to fill an entire container. Allcargo combines cargo from multiple customers in the same container, with volumes measured by the amount of space the shipments occupy.
The decline in LCL volumes reflects the company’s ongoing rationalisation of loss-making trade lanes, Allcargo said. The company described the reduction in volumes as a deliberate trade-off that has resulted in better yields.
Allcargo expects demand during the peak shipping season to remain resilient, while constrained capacity is likely to keep freight rates elevated in the near term.
LCL volumes fell year-on-year across all major regions. Compared with July, volumes declined in Europe, North Asia and the Indian Subcontinent, while remaining flat in North America, the Middle East and Latin America.
Full-container cargo rises from July
Allcargo’s full-container-load (FCL) volumes, where a customer’s shipment occupies an entire container, stood at 51,023 TEUs in August. That was down 5% from a year earlier but up 4% from July.
A TEU, or twenty-foot equivalent unit, is a standard measure of container capacity.
The company said the year-on-year decline in FCL volumes was partly due to the crisis in the Middle East.
FCL volumes declined year-on-year in the Middle East, North America and the Indian Subcontinent, while North Asia and Latin America recorded growth.
Compared with July, FCL volumes increased in the Indian Subcontinent, North Asia and North America. Volumes declined in Latin America, the Middle East and Europe.
Air cargo volumes fall 6%
Allcargo handled 2,796 tonnes of air cargo in August, down 6% from a year earlier but up 2% from July.
Air-cargo volumes declined year-on-year across all major regions except Europe and the Middle East. From July, volumes increased in Europe, the Middle East and Latin America, while North America, North Asia and the Indian Subcontinent recorded declines.
Shares of Allcargo Global closed at ₹13.84 on September 21, up 0.29%, or ₹0.04, from the previous close on the NSE.
Also Read: FIIs turn net sellers, offload ₹576 crore on Monday; DIIs remain buyers