Air Cargo Market Sees 15th Consecutive Month of Growth, Reports IATA
The global air cargo market maintained its upward momentum in October, achieving a 15th straight month of year-on-year growth, according to IATA's Air Cargo Market Analysis. Cargo Tonne-Kilometers (CTK) surged by 9.8% compared to October last year, alongside a 5.7% month-on-month increase after seasonal adjustments. International CTK growth reached 10.3%, driven by contributions from all regions. Latin America and the Caribbean led the way with a remarkable 17.6% increase, while demand on the Middle East-Europe trade lane rose significantly by 15.3%.
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Capacity and Regional Contributions
Available Cargo Tonne-Kilometers (ACTK), a measure of global air cargo capacity, climbed by 5.9% year-on-year, achieving record levels. Despite a slight seasonal month-on-month decline, 2024 has seen robust growth, with ACTK up 8.1% year-to-date.
Asia-Pacific carriers were the largest contributors to annual CTK growth, followed by North American carriers, which advanced to the second spot for the first time since August 2023. Growth from North America was bolstered by events such as a three-day U.S. port strike and China’s Golden Week holiday, both of which spurred demand for air freight. European airlines contributed 16.6% to the growth, with Middle Eastern carriers accounting for 6.4%.
Driving Forces Behind Demand - E-commerce growth in the U.S. and Europe, coupled with ongoing capacity constraints in ocean shipping, fueled demand on international routes. Latin America and the Caribbean retained their position as top-performing regions, while North American and Asia-Pacific carriers also reported strong growth.
Air cargo load factors improved, signaling increased airline revenue potential. Belly-hold capacity on passenger flights marked its 43rd consecutive month of growth, while dedicated freighter capacity posted gains for the seventh consecutive month.
Operational Costs and Yields - Global jet fuel prices fell 25.7% year-on-year despite a monthly uptick, providing relief for airline operating expenses. Meanwhile, air cargo yields, including surcharges, grew 1.2% month-on-month and 10.6% year-on-year, remaining 49% higher than pre-pandemic levels.
Economic Indicators and Outlook - Global industrial production increased by 1.6% year-on-year, and goods trade rose by 2.4%, even as monthly figures showed slight contractions. Manufacturing activity expanded in October, with the Purchasing Managers’ Index (PMI) climbing to 50.9.
Inflation in major economies largely stayed within central bank targets, though the U.S. and EU saw minor increases while Japan experienced a decline. China’s lower inflation rate raised concerns about a potential economic slowdown that could impact its air cargo exports. Diverging trends in the Producer Price Index (PPI) may influence production costs and air cargo demand globally, with deflation in China and the EU potentially boosting exports.
October’s performance highlights the air cargo sector’s resilience and sustained demand, even amid fluctuating global economic conditions. Continued growth in international routes and improving operational metrics underscore the sector’s critical role in global trade.
Edited by Jacky(PGA)
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