IATA reports cargo demand continues to outperform pre-COVID levels

The International Air Transport Association (IATA) reported that global air cargo demand continued to outperform pre-COVID levels, with demand up 12% this April.

As comparisons between 2021 and 2020 monthly results are distorted by the impact of COVID-19 unless otherwise noted, IATA made comparisons with April 2019, which followed a more normal demand pattern.

“Air cargo continues to be the good news story for the air transport sector. Some regions are outperforming the global trend, particularly carriers in North America, the Middle East, and Africa. Strong air cargo performance, however, is not universal. The recovery for carriers in the Latin American region, for example, is stalled,” said Willie Walsh, IATA Director-General.

The strong performance was led by North American carriers contributing 7.5% of the 12% growth rate in April.

Asia-Pacific airlines saw demand for international air cargo increase by 9.2%.

International capacity remained constrained in the region and was down 18.7%.

As was also the case in March, the region’s airlines reported the highest international load factor at 77.5%.

Middle Eastern carriers posted a 15.3% rise in international cargo volumes, a significant improvement compared to the previous month.

Seasonally adjusted volumes remain on a robust upward trend. International capacity in April was down 17.5% compared to the same month in 2019.

Overall, global air cargo capacity remains 9.7% below pre-COVID-19 levels due to the ongoing groundings of passenger aircraft. Airlines, however, continue to use dedicated freighters to plug the lack of available belly capacity.

Underlying economic conditions and favorable supply chain dynamics remain supportive for air cargo after global trade rose 4.2% in March and competitiveness against sea shipping improved.

Air cargo rates have stabilized since peaking in April 2020, while shipping container rates have remained relatively high in comparison.

Longer supplier delivery times as economic activity ramps up have made the speed of air cargo an advantage as it helps in recovering some of the time lost in the production process.

SOURCE: Manila Bulletin