Global air cargo demand surged 11.4 percent on trade, booming e-commerce, and continuing capacity constraints on maritime shipping in August.
The markets showed continued strong annual growth in demand as seen in the recent data released by the International Air Transport Association (IATA).
Total demand, measured in cargo tonne-kilometers (CTKs*), rose by 11.4 percent compared to August 2023 levels (12.4 percent for international operations).
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This is the ninth consecutive month of double-digit year-on-year growth, with overall levels reaching heights not seen since the record peaks of 2021.
Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 6.2 percent compared to August 2023 (8.2 percent for international operations).
This was largely related to the growth in international belly capacity, which rose 10.9 percent on the strength of passenger markets. Industry-wide capacity has reached an all-time high.
“We continue to see very good news in air cargo markets. The sector recorded a second consecutive month of record high demand year-to-date. Even with record levels of capacity, yields are up 11.7 percent in 2023, 2 percent on the previous month, and 46 percent above pre-pandemic levels.
“This strong performance is underpinned by slow but steady growth in global trade, booming e-commerce, and continuing capacity constraints on maritime shipping,” said Willie Walsh, IATA’s Director General.
Some of the factors affecting the movement include PMI and inflation among others.
In August, the Purchasing Managers Index (PMI) for global manufacturing output and the PMI for new export orders were below the 50-mark at 49.9 and 48.4 respectively, indicating contraction.
Industrial production stayed level in August month-on-month and global cross-border trade fell marginally at -0.3 percent.
Inflation saw a mixed picture in August in the US and EU, inflation rates fell to 2.6 percent and 2.4 percent respectively, the lowest rates since 2021. In contrast, Japan’s inflation ticked up 0.3 percentage points to 3.0 percent, the highest rate in ten months.
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Meanwhile, China’s inflation rate continued its moderate upward trend, growing by 0.1 percentage points to reach 0.7 percent, the highest rate in six months.
African airlines saw 7.5 percent year-on-year demand growth for air cargo in August. Demand on the Africa–Asia market increased by 21.1 percent compared to August 2023, maintaining a streak of double-digit annual growth that originated in the second half of 2023. August capacity increased by 11.4 percent year-on-year.
Asia-Pacific airlines saw 14.6 percent year-on-year demand growth for air cargo in August – the strongest of all regions. Demand in the Asia-Africa, Asia-Europe, and within-Asia markets grew by 21.2 percent, 18.4 percent, and 16.1 percent respectively.
Intra-Asia demand growth decreased by 5.0 percentage points from the previous month, partially linked to the social unrest in Bangladesh and Typhoon Shanshan in Japan. Both events impacted local logistics operations with airport closures and flight cancellations. Capacity increased by 8.6 percent year-on-year.
North American carriers saw 4.8 percent year-on-year demand growth for air cargo in August– the lowest of all regions. Demand on the Asia-North America trade lane, the largest trade lane by volume, grew by 9.3 percent year-on-year, while the North America-Europe route saw a more modest increase of 6.1 percent. August capacity increased by 2.4 percent year-on-year.
European carriers saw 13.5 percent year-on-year demand growth for air cargo in August. The Middle East–Europe trade lane led growth, up 28.9 percent, maintaining a streak of double-digit annual growth that originated in September 2023. The Europe–Asia route, the second largest market, was up 18.4 percent. Within Europe also saw double-digit growth, up 15.0 percent. August capacity increased 9.4 percent year-on-year.
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Middle Eastern carriers saw 13.5 percent year-on-year demand growth for air cargo in August. As mentioned above, the Middle East–Europe market performed particularly well surging 28.9 percent, ahead of Middle East-Asia which grew by 13.5 percent year-on-year. August capacity increased 4.0 percent year-on-year.
Latin American carriers saw 14.2 percent year-on-year demand growth for air cargo in August. Capacity increased 8.0 percent year-on-year.
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