Strong Air Cargo Demand Continues in July

IATA's July 2021 data for global air cargo markets shows that global demand, measured in cargo tonne-kilometers (CTKs), was up 8.6% compared to July 2019.

Overall growth remains strong compared to the long-term average growth trend of around 4.7%, though the pace of growth slowed slightly when compared to June which saw demand increase 9.2% against pre-COVID19 levels.

Capacity continues to recover but is still 10.3% down compared to July 2019.

Economic conditions continue to support air cargo growth:

- The July export orders component of the manufacturing Purchasing Managers Indices (PMIs) was 52.7%, indicating a short-term boost to demand if those orders are shipped by air.

- The inventory-to-sales ratio remains low ahead of the peak year-end retail season.

“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.

Asia-Pacific airlines saw demand for international air cargo increase 4.4% in July 2021 compared to the same month in 2019, and an improvement compared to the previous month’s 3.9% 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% increase in international demand in July 2021 compared to July 2019. This was in line with June’s performance (19.8%) 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% 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%). Manufacturing activity, orders and supplier delivery times are still favorable to air cargo.

Middle Eastern carriers posted an 11.3% rise in international cargo volumes in July 2021 versus July 2019. This was a decrease compared to the previous month (15.8%). 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% in international cargo volumes in July compared to the 2019 period, an improvement from the -21.5% 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.

African airlines’ cargo demand statistics were unavailable at press time.

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