Global air cargo demand wanes in November as economic headwinds persist: Iata
DEMAND for air cargo appeared to soften globally in November 2022, despite it being the traditional peak season for air cargo performance.
Data released by the International Air Transport Association (Iata) on Monday (Jan 9) showed that Asia-Pacific airlines took the hardest hit in terms of air cargo volumes, decreasing by 18.6 per cent in November compared to the previous year, and down by 14.7 per cent the month prior.
Iata noted that the region’s airlines were impacted by lower levels of trade and manufacturing activity and disruptions in supply chains due to rising Covid cases in China. As a result, available capacity in the region decreased by 4.5 per cent compared to 2021.
On the other end of the spectrum, Latin American carriers reported 2.8 per cent higher cargo volumes year on year – demonstrating the strongest performance of all regions and showing a significant improvement over the previous month. Capacity in November was up 2.8 per cent from a year ago.
Cargo volumes for European carriers fell 16.5 per cent year-on-year in November but saw improved performance from October 2022, thanks to stronger new export orders in Germany. The on-year decline in volumes were attributed mainly to the Russia-Ukraine war and high inflation levels. Capacity fell 6.6 per cent from the same period a year ago.
Middle Eastern carriers saw cargo volumes fall 14.7 per cent on-year, despite seeing a marginal improvement from the previous month. Lower cargo volumes to and from Europe impacted performance in the Middle East. The region’s capacity in November 2022 increased 2.1 per cent on year.
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North American carriers posted a 6.6 per cent decrease in cargo volumes compared to the same month in 2021. This was an improvement in performance compared to October, and capacity increased 0.3 per cent from the previous year.
African airlines saw cargo volumes fall by 6.3 per cent on year, but performance improved when compared to the previous month. Capacity was 11.4 per cent below November 2021 levels.
Globally, demand fell 13.7 per cent year on year in November, while international cargo capacity dipped 0.1 per cent from the previous year. Capacity was 1.9 per cent down from November 2021, marking the second year-on-year contraction since April 2022.
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Iata noted a smaller contraction of in overall demand compared to pre-Covid levels, while capacity was down 8.8 per cent.
The association also noted several factors which could add cost pressure to carriers globally, such as shrinking new export orders in several major economies and a sharp appreciation in the US dollar.
It also believes maritime cargo was the primary beneficiary of the global goods trade’s expansion in October, given the softer air cargo demand.
Iata’s director general Willie Walsh said he sees upside potential in several indicators including stabilising oil prices, slowing inflation and the slight expansion in goods traded globally.
“Resilience in the face of economic uncertainties is demonstrated with demand being relatively stable on a month-to-month basis,” said Walsh of November’s air cargo volumes. “But shrinking export orders globally and China’s rising Covid cases are cause for careful monitoring,” he cautioned.
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