Airfreight market remains buoyant
The International Air Transport Association (IATA) reports continued strong demand for air cargo, with global markets experiencing significant growth. June’s data highlights exceptional first-half performance, surpassing the volumes of both 2022 and the record-breaking 2021 levels.
Market Trends
In June, global demand for air cargo, measured in cargo tonne kilometres, rose by 14% year-on-year. This marks the seventh consecutive month of double-digit growth in airfreight traffic. Airfreight capacity, measured in available cargo tonne kilometres, increased by 9% compared to June 2023, with the cargo load factor improving by 2 percentage points to 46%.
For the first half of the year, total demand increased by 13% compared to the same period in 2023, by 4% compared to 2022, and remained steady compared to 2021.
Key Insights
The surge in air cargo demand is driven by constraints in maritime shipping and a booming eCommerce sector. Despite ongoing political and economic challenges, such as the US customs crackdown on eCommerce deliveries from China, the sector has shown resilience.
IATA’s director general, Willie Walsh, expressed optimism for continued strong performance into the second half of 2024. However, IATA also noted potential concerns in the operating environment. In June, the Purchasing Managers Index (PMI) for global manufacturing output indicated expansion at 52, while the new export orders PMI registered a slight contraction at 49.
Global cross-border trade rose by 0.1% in May, but industrial production remained flat. Inflation rates showed mixed trends: constant in the EU and Japan at around 3%, dropping to 3% in the US, and remaining near zero in China due to weak domestic demand and other economic challenges.
Regional Performance
– Asia Pacific: Airlines saw a 17% year-on-year demand growth in June, with capacity increasing by 11%.
– North America: Carriers experienced a 10% demand growth, with capacity up by 6%.
– Europe: Airlines enjoyed a 16% increase in demand, with capacity rising by 9%.
– Middle East: Carriers reported a 14% demand growth, with capacity increasing by 7%.
– Latin America: Demand grew by 13%, and capacity increased by 16%.
– Africa: Airlines saw a 12% demand growth, with capacity surging by 24%.
Conclusion
The air freight market has shown robust growth and resilience, driven by strong demand and supported by improved capacity. While some economic indicators present potential challenges, the overall outlook for the second half of 2024 remains positive, with continued strength expected across all regions.
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