en English

Global air cargo demand fell by 9.7% in July: IATA

IATA
Reading Time: 3 minutes

The International Air Transport Association (IATA) revealed that the global air cargo demand continued to track at near pre-pandemic levels in July (-3.5%), but below July 2021 performance (-9.7%).

The global demand, measured in cargo tonne-kilometers (CTKs*), fell 9.7% compared to July 2021 (-10.2% for international operations). Demand stood at -3.5% compared to July 2019. The capacity was 3.6% above July 2021 (+6.8% for international operations) but still 7.8% below July 2019 levels.

Among a few important factors in the working environment are the new export orders, a leading indicator of cargo demand, decreased in all markets, except China which began a sharp upward trend in June.

The conflict in Ukraine kept on weakening freight limit used to serve Europe as a few carriers situated in Russia and Ukraine were key freight players. Worldwide products exchange kept on recuperating in Q2 and the extra facilitating of Coronavirus limitations in China will additionally support recuperation before very long. While oceanic will be the principal recipient, air freight is set to get a lift.

“Air cargo is tracking at near 2019 levels although it has taken a step back compared to the extraordinary performance of 2020-2021. Volatility resulting from supply chain constraints and evolving economic conditions has seen cargo markets essentially move sideways since April. July data shows us that air cargo continues to hold its own, but as is the case for almost all industries, we’ll need to carefully watch both economic and political developments over the coming months,” said Willie Walsh, IATA’s Director General.

Many of the challenges and opportunities facing the air cargo industry will likely be discussed at the World Cargo Symposium which is slated to be held in London, from 27 – 29 September.

July Regional Performance

  • Asia-Pacific airlines: the air cargo volumes in the region fell by 9.0% in July 2022 compared to the same month in 2021-a significant decrease over the 2.1% decline in June. Airlines in the region continue to be impacted by the conflict in Ukraine, labor shortages, and lower levels of trade and manufacturing activity due to Omicron-related restrictions. The scale of the decrease indicates volatility in volumes, as pent-up demand from the last Omicron-related lockdowns in China should prevent such notable declines in volumes. Available capacity in the region increased by 2.7% compared to July 2021.
  • North American carriers: A 5.7% decrease was posted in cargo volumes in July 2022 compared to the same month in 2021. This marked an improvement over the 13.5% decline in June. The lifting of restrictions in China is expected to boost demand in the coming months. Capacity was up 4.2% compared to July 2021.
  • European carriers: There was a decrease of 17% in cargo volumes in July 2022 compared to the same month in 2021. This was the worst performance of all regions for the third month in a row. This is attributed to the war in Ukraine. Labor shortages and lower manufacturing activity in Asia due to Omicron also affected volumes. Capacity increased 0.9% in July 2022 compared to July 2021.
  • Middle Eastern carriers: A 10.9% year-on-year decrease in cargo volumes was experienced in July 2022. Significant benefits from traffic being redirected to avoid flying over Russia failed to materialize and stagnant cargo volumes to/from Europe impacted the region’s performance. Capacity was up 4.9% compared to July 2021.
  • Latin American carriers: An increase was reported of 9.2% in cargo volumes in July 2022 compared to July 2021. This was the strongest performance of all regions. This region saw airlines introduce new services and capacity, and in some cases invest in additional aircraft for air cargo in the coming months, this kept an optimistic outlook. Capacity in July was up 21.4% compared to the same month in 2021.
  • African airlines: The region witnessed cargo volumes decrease by 3.5% in July 2022 compared to July 2021. This was significantly slower than the growth recorded the previous month (5.7%). Capacity was 2.2% below July 2021 levels.

Leave a Reply

Your email address will not be published.

LATEST NEWS