Global air cargo demand surges 14% on shipping constraints, e-commerce boom

The International Air Transport Association (IATA) released data for June 2024 global air cargo markets showing total demand, measured in cargo tonne-kilometers (CTKs*), rose by 14.1 percent compared to June 2023 levels (15.6 percent for international operations). This is the seventh consecutive month of double-digit year-on-year growth.

This contributed to an exceptional first half-year performance for air cargo, with volumes exceeding 2023, 2022, and even the record-breaking 2021 levels.

“Air cargo demand surged in June. Strong growth across all regions and major trade lanes combined for a record-breaking first-half performance in terms of CTKs. Maritime shipping constraints and a booming e-commerce sector are among the strongest growth drivers.

“Meanwhile, the sector has remained largely impervious to ongoing political and economic challenges, and the US customs crackdown on e-commerce deliveries from China. Air cargo looks to be on solid ground to continue its strong performance into the second half of 2024,” said Willie Walsh, IATA’s Director General.

Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 8.8 percent compared to June 2023 (10.8 percent for international operations).

Total half-year (H1) demand increased by 13.4 percent compared to H1 2023, by 4.3 percent compared to H1 2022, and by 0.02 percent compared to H1 2021.

In June, the Purchasing Managers Index (PMI) for global manufacturing output indicated expansion (52.3) while the new export orders PMI registered a small contraction, falling below the critical 50-point benchmark to 49.3.

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Global cross-border trade expanded 0.1 percent month-on-month in May while industrial production stayed level compared to the previous month.

Inflation was a mixed picture in June. In the EU and Japan, inflation rates stayed roughly constant compared to the previous month at 2.6 percent and 2.8 percent respectively, while dropping in the US to 3.0 percent. In contrast, China’s inflation rate remained near zero (0.3 percent) reflecting weak domestic demand amid high unemployment, slow income growth, and a crisis in the real estate sector, a trend that has persisted since 2023.

African airlines saw 11.8 percent year-on-year demand growth for air cargo in June. Demand on the Africa–Asia market increased by 37.5 percent compared to June 2023, the strongest performance of all trade lanes. June capacity increased by 23.8 percent year-on-year.

Asia-Pacific airlines saw 17.0 percent year-on-year demand growth for air cargo in June — the strongest among all regions. Demand on the Africa-Asia trade lane grew by 37.5 percent year-on-year, while the Europe-Asia, Within Asia and Middle East-Asia trade lanes rose by 20.3 percent, 21.0 percent and 15.1 percent respectively. Capacity increased by 10.7 percent year-on-year.

North American carriers saw 9.5 percent year-on-year demand growth for air cargo in June — the weakest among all regions. Demand on the North America-Europe route saw an increase of 6.7 percent, while the Asia-North America trade lane, the world’s largest, grew by 12.8 percent year-on-year, the largest annual increase in five months. June capacity increased by six percent year-on-year.

European carriers saw 16.1 percent year-on-year demand growth for air cargo in June. Intra-European air cargo rose by 16.7 percent compared to June 2023, the sixth month in a row of double-digit annual growth. Europe–Middle East and Europe–Asia routes saw demand increase by 30.2 percent and 20.3 percent respectively. June capacity increased 9.1 percent year-on-year.

Middle Eastern carriers saw 13.8 percent year-on-year demand growth for air cargo in June. As mentioned above, the Middle East–Europe market performed particularly well with 30.2 percent annual growth, ahead of Middle East–Asia which grew by 15.1 percent year-on-year. June capacity increased 6.9 percent year-on-year.

Latin American carriers saw 13.1 percent year-on-year demand growth for air cargo in June. Capacity increased 15.5 percent year-on-year. Notably, Latin America posted the second-highest increase in international demand growth at 17.2 percent in June, up 6.3 percentage points compared to the previous month.

Ifeoma Okeke-Korieocha

Ifeoma Okeke-Korieocha is the Aviation Correspondent at BusinessDay Media Limited, publishers of BusinessDay Newspapers. She is also the Deputy Editor, BusinessDay Weekender Magazine, the Saturday Weekend edition of BusinessDay. She holds a BSC in Mass Communication from the prestigious University of Nigeria, Nsukka and a Masters degree in Marketing at the University of Lagos. As the lead writer on the aviation desk, Ifeoma is responsible and in charge of the three weekly aviation and travel pages in BusinessDay and BDSunday. She also overseas and edits all pages of BusinessDay Saturday Weekender. She has written various investigative, features and news stories in aviation and business related issues and has been severally nominated for award in the category of Aviation Writer of the Year by the Nigeria Media Nite-Out awards; one of the Nigeria’s most prestigious media awards ceremonies. Ifeoma is a one-time winner of the prestigious Nigeria Media Merit Award under the 'Aviation Writer of the Year' Category. She is the 2025 Eloy Award winner under the Print Media Journalist category. She has undergone several journalism trainings by various prestigious organisations. Ifeoma is also a fellow of the Female Reporters Leadership Fellowship of the Wole Soyinka Centre for Investigative Journalism.