IATA: Cargo demand maintains double-digit growth in July 2024
3 weeks ago
IATA: Cargo demand maintains double-digit growth in July 2024
Air cargo demand continued its strong upward trajectory in July, with the latest IATA data revealing a 13.6% year-on-year surge, driven by ongoing disruptions in ocean freight and the booming e-commerce sector.
According to the airline association, cargo tonne kilometers have seen double-digit growth for eight consecutive months, reaching levels not observed since the Covid-driven spike of 2021.
Capacity in July grew by 8.3% compared to last year, which helped lift load factors by 2.1 percentage points to 44.4%. This increase in capacity was primarily fueled by a 12.8% rise in international bellyhold capacity and a 6.9% increase in international freighter capacity.
Willie Walsh, IATA’s director general, commented, “Air cargo demand reached record highs year-to-date in July, with robust growth across all regions. The sector continues to benefit from the rise in global trade, the e-commerce boom, and challenges in maritime shipping. With the peak season approaching, the outlook for air cargo remains exceptionally strong. Airlines have demonstrated remarkable agility in navigating political and economic challenges to meet the evolving demand.”
In terms of market indicators, IATA noted that the Purchasing Managers Index (PMI) for global manufacturing output indicated modest expansion at 50.2, while the export orders index stood slightly below the growth threshold at 49.4. Inflation rates remained stable in July in key regions such as the US, Japan, and the EU, with rates of 2.9%, 2.8%, and 2.8%, respectively, while China saw a slight increase to 0.6%, the highest in five months.
**Regional Performance**
On a regional level, Asia Pacific airlines recorded the most significant year-on-year demand increase, with a 17.6% rise. The within-Asia trade lane surged by 19.8%, and other major lanes such as Europe-Asia, Middle East-Asia, and Asia-Africa saw increases of 17.9%, 15.9%, and 15.4%, respectively.
North American carriers experienced an 8.7% year-on-year increase in air cargo demand in July, although growth was somewhat tempered by flight cancellations and airport closures in the US and the Caribbean due to Hurricane Beryl. Demand on the Asia-North America trade lane, the largest by volume, grew by 10.8%, while the North America-Europe route saw a more modest increase of 5.3%.
European carriers posted a 3.7% year-on-year growth in demand in July, with the Middle East-Europe trade lane leading the way at 32.2%. The Europe-Asia route improved by 17.9%, and intra-Europe demand grew by 15.5%.
Middle Eastern airlines saw a 14.7% year-on-year rise in air cargo demand, bolstered by strong volumes to Europe.
Latin American carriers registered an 11.1% increase in demand, despite operational constraints imposed by Hurricane Beryl.
Finally, African airlines saw a 6.2% year-on-year growth in air cargo demand in July, with the Africa-Asia market notably expanding by 15.4%.
Source: AirCargoNews