Data released by the International Air Transport Association (IATA) for July 2024 global air cargo markets shows continuing strong annual growth in demand.
African airlines saw 6.2 percent year-on-year demand growth for air cargo in July – the lowest of all regions and their lowest recorded figure in 2024. Demand on the Africa–Asia market increased by 15.4% compared to July 2023. July capacity increased by 10.5% year-on-year.
Total demand, measured in cargo tonne-kilometers (CTKs*), rose by 13.6 percent compared to July 2023 levels (14.3 percent for international operations). This is the eighth 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 8.3 percent compared to July 2023 (10.1 percent for international operations).
This was largely related to the growth in international belly capacity, which rose 12.8 percent on the strength of passenger markets and balancing the 6.9 percent growth of international freighter capacity. It should be noted that the increase in belly capacity is the lowest in 40 months whereas the growth in freighter capacity is the highest since an exceptional jump was recorded in January 2024.
“Air cargo demand hit record highs year-to-date in July with strong growth across all regions. The air cargo business continues to benefit from growth in global trade, booming e-commerce and capacity constraints on maritime shipping.
“With the peak season still to come, it is shaping to be a very strong year for air cargo. And airlines have proven adept at navigating political and economic uncertainties to flexibly meet emerging demand trends,” said Willie Walsh, IATA’s Director General.
Some of the factors affecting the movement include PMI and inflation among others.
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In July, the Purchasing Managers Index (PMIs) for global manufacturing output indicated expansion at 50.2. Meanwhile, the global new export orders PMI continued to hover below the 50-mark at 49.4, a marker for contraction.
Industrial production stayed level in July month-on-month and global cross-border trade increased 0.7 percent.
Inflation remained relatively stable in July in the US, Japan, and the EU, with inflation rates of 2.9 percent, 2.8 percent, and 2.8 percent, respectively. Meanwhile, China’s inflation rate increased 0.3 percentage points to 0.6 percent, the highest level in five months.
Asia-Pacific airlines saw 17.6 percent year-on-year demand growth for air cargo in July – the strongest of all regions. Demand on the Within-Asia trade lane grew by 19.8 percent year-on-year, while the Europe-Asia, Middle East-Asia, and Asia-Africa trade lanes rose by 17.9 percent, 15.9 percent and 15.4 percent respectively. Capacity increased by 11.3 percent year-on-year.
North American carriers saw 8.7 percent year-on-year demand growth for air cargo in July. Growth was hampered in part by flight cancelations and airport closures in the US and the Caribbean in relation to Hurricane Beryl. Demand on the Asia-North America trade lane, the largest trade lane by volume, grew by 10.8 percent year-on-year, while the North America-Europe route saw a modest increase of 5.3 percent. July capacity increased by 7.0 percent year-on-year.
European carriers saw 13.7 percent year-on-year demand growth for air cargo in July. The Middle East–Europe trade lane led growth, up 32.2 percent, maintaining a streak of double-digit annual growth that originated in September 2023. The Europe–Asia route, the second largest market, was up 17.9 percent . Within Europe also saw double-digit growth, up 15.5 percent . July capacity increased 7.6 percent year-on-year.
Middle Eastern carriers saw 14.7 percent year-on-year demand growth for air cargo in July. As mentioned above, the Middle East–Europe trade lane performed particularly well surging 32.2 percent, ahead of Middle East-Asia which grew by 15.9 percent year-on-year. July capacity increased 4.4 percent year-on-year.
Latin American carriers saw 11.1 percent year-on-year demand growth for air cargo in July. As with North American carriers, growth was hampered in part by flight cancelations and airport closures in the US and the Caribbean related to Hurricane Beryl. Capacity increased 9.4% year-on-year.
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