Global air cargo demand continues to grow in July

Global air cargo demand continued its strong growth trend in July.

Air Canada ULDs on the tarmac at Pearson International Airport in Toronto.

The International Air Transport Association (IATA) has released its monthly data, showing demand, measured in cargo tonne-kilometers (CTKs), was up 8.6 percent compared to July 2019. Overall growth remains strong compared to the long-term average growth trend of around 4.7 percent .

The pace of growth slowed slightly compared to June which saw demand increase 9.2 percent (against pre-Covid-19 levels). Capacity continues to recover but is still 10.3 percent down compared to July 2019.

As comparisons between 2021 and 2020 monthly results are distorted by the extraordinary impact of Covid-19, unless otherwise noted, all comparisons to follow are to June 2019 which followed a normal demand pattern.

“July was another solid month for global air cargo demand. Economic conditions indicate that the strong growth trend will continue into the peak year-end demand period. The Delta variant of Covid-19 could bring some risks. If supply chains and production lines are disrupted, there is potential for a knock-on effect for air cargo shipments,” said Wille Walsh, IATA’s director general.

July 2021 (% chg vs the same month in 2019)	World share¹	CTK	ACTK	CLF (%-pt)²	CLF (level)³
Total Market	100.0%	8.6%	-10.3%	9.5%	54.4%
Asia Pacific	32.6%	1.2%	-19.8%	13.6%	65.4%
Europe	22.3%	6.1%	-14.1%	11.3%	59.8%
Latin America	2.4%	-9.8%	-17.7%	3.4%	38.7%
Middle East	13.0%	11.3%	-6.1%	8.4%	53.6%
North America	27.8%	21.2%	1.8%	7.1%	44.3%

¹ % of industry CTKs in 2020 ² Change in load factor vs 2019 ³ Load factor level

July Regional Performance

Asia-Pacific airlines saw demand for international air cargo increase 4.4 percent in July 2021 compared to the same month in 2019, and an improvement compared to the previous month’s 3.9 percent expansion. Demand is being affected by an easing of momentum in key activity indicators in Asia, and by congested supply chains.

North American carriers posted a 20.5 percent increase in international demand in July 2021 compared to July 2019. This was in line with June’s performance (19.8 percent) and the strongest of all regions. New export orders and demand for faster shipping times are underpinning the North American performance.

European carriers posted a 6.0 percent increase in demand in July 2021 compared to the same month in 2019. This was a marginal decrease compared to the previous month (6.8 percent). Manufacturing activity, orders and supplier delivery times are still favorable to air cargo.

Middle Eastern carriers posted an 11.3 percent rise in international cargo volumes in July 2021 versus July 2019. This was a decrease compared to the previous month (15.8 percent). Some routes, however, are still posting strong performance, for example on the large Middle East–Asia trade lanes.

Latin American carriers reported a decline of 10.2 percent in international cargo volumes in July compared to the 2019 period, an improvement from the -21.5 percent fall recorded in June. Although Latin America continues to show the weakest regional performance, the comparison with pre-crisis traffic levels has been highly volatile in recent months. Several trade routes to/from Latin America are performing well, such as North-Central and North-South America and Europe-South America, confirming that demand for air cargo in the region is recovering from the crisis.