Air cargo markets continue strong annual growth

The International Air Transport Association (IATA) released data for July 2024 global air cargo markets showing cargo tonne-kilometers (CTKs) rose by 13.6 per cent compared to July 2023 levels.

The increase in CTKs, which includes a 14.3 per cent climb for international operations, is the eighth consecutive month of double-digit year-on-year growth, with overall levels reaching heights not seen since the record peaks of 2021.

North American carriers saw 8.7 per cent year-on-year demand growth for air cargo in July. Growth was hampered in part by flight cancelations and airport closures in the U.S. and the Caribbean in relation to Hurricane Beryl. Demand on the Asia-North America trade lane, the largest trade lane by volume, grew by 10.8 per cent year-on-year, while the North America-Europe route saw a modest increase of 5.3 per cent. July capacity increased by seven per cent year-on-year.

Asia-Pacific airlines saw 17.6 per cent year-on-year demand growth for air cargo in July – the strongest of all regions, while African airlines saw 6.2 per cent year-on-year demand growth for air cargo in July – the lowest of all regions and their lowest recorded figure in 2024.

Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 8.3 per cent compared to July 2023, and 10.1 per cent for international operations. This was largely related to the growth in international belly capacity, which rose 12.8 per cent on the strength of passenger markets and balancing the 6.9 per cent growth of international freighter capacity. It should be noted that the increase in belly capacity is the lowest in 40 months whereas the growth in freighter capacity is the highest since an exceptional jump was recorded in January 2024.

“Air cargo demand hit record highs year-to-date in July with strong growth across all regions. The air cargo business continues to benefit from growth in global trade, booming e-commerce and capacity constraints on maritime shipping,” said Willie Walsh, IATA’s director general. “With the peak season still to come, it is shaping to be a very strong year for air cargo. And airlines have proven adept at navigating political and economic uncertainties to flexibly meet emerging demand trends.”

Factors in the operating environment include:

• In July, the Purchasing Managers Index (PMIs) for global manufacturing output indicated expansion at 50.2. Meanwhile, the global new export orders PMI continued to hover below the 50-mark at 49.4, a marker for contraction.
• Industrial production stayed level in July month-on-month and global cross-border trade increased 0.7 per cent.
• Inflation remained relatively stable in July in the US, Japan, and the EU, with inflation rates of 2.9 per cent, 2.8 per cent and 2.8 per cent, respectively. Meanwhile, China’s inflation rate increased 0.3 percentage points to 0.6 per cent, the highest level in five months.