June air cargo traffic up nearly 1% despite trade disruptions

Air cargo traffic grew in June despite trade disruptions from U.S. tariffs and the conflict in the Middle East. June’s air cargo traffic , measured in cargo tonne kilometers (CTK), rose 0.8% year over year and traffic on international lanes grew 1.6% YoY, according to data released July 31 by IATA. Capacity, measured in available CTKs, rose 1.7% YoY and rose 2.8% YoY for international operations. “The June air cargo data made it very clear that stability and predictability are essential supports for trade,” IATA Director General Willie Walsh said in the release. “Emerging clarity on U.S. tariffs allows businesses greater confidence in planning. “But we cannot overlook the fact that the ‘deals’ being struck are resulting in significantly higher tariffs on goods imported into the U.S. than we had just a few months ago,” he said. “The economic damage of these cost barriers to trade remains to be seen. In the meantime, governments should redouble efforts to make trade facilitation simpler, faster, cheaper and more secure with digitalization.” External factors The release highlighted these operating environment factors: Global industrial production rose 3.2% YoY in May and global trade grew 5% YoY in May, the latest data available. Air cargo traffic in May grew 2.2% YoY. Global jet fuel prices in June fell 12% YoY but rose 8.6% month over month. Jet fuel spot prices in the United States in June fell YoY for the twelfth consecutive month, but rose MoM for the first time since January . June’s Purchasing Managers’ Index (PMI) for global manufacturing output rebounded to 51.2, after falling to 49.1 in May . A PMI above 50 indicates growth and one below 50 indicates contraction. The PMI for new export orders remained in negative territory at 49.3, despite rising from 48 the previous month. [caption id="attachment_57290696" align="aligncenter" width="1322"] (Courtesy/IATA)[/caption] Regional performance For the second consecutive month, Asia-Pacific carriers saw the most YoY traffic growth of all regions while North America saw the largest YoY decline. “Overall, air cargo demand grew by a modest 0.8% YoY in June, but there are very differing stories behind that number for the industry’s major players,” Walsh said. “ Trade tensions saw North American traffic fall by 8.3% and European growth stagnate at 0.8%. But Asia-Pacific bucked the trend to report a 9% expansion. “Meanwhile disruptions from military conflict in the Middle East saw the region’s cargo traffic fall by 3.2%,” he said. By region YoY: Asia-Pacific carrier traffic grew 9% and capacity grew 7.8%; Latin American carrier traffic grew 3.5% and capacity fell 0.4%; European carrier traffic grew 0.8% and capacity grew 2.6%; Middle Eastern carrier traffic fell 3.2% and capacity grew 1.5%; African carrier traffic fell 3.9% and capacity grew 6.2%; and North American carrier traffic fell 8.3% and capacity fell 5.1%. Trade lane performance Air cargo volumes increased for major trade corridors from or within Europe and Middle East-Asia in June, IATA reported. However, other relevant trade routes from or within Asia and from North America decreased significantly. By trade lane: Europe-Asia grew 10.6% YoY, the 28th consecutive month of growth; Intra-Asia grew 8.7% YoY, the 20th consecutive month of growth; North America-Europe grew 4.8% YoY, the 17th consecutive month of growth; Middle East-Asia grew 2.8% YoY, the fourth consecutive month of growth; Middle East-Europe fell 4.5% YoY, the sixth consecutive month of contraction; Asia-North America fell 4.8% YoY, the second consecutive month of decline; and Africa-Asia fell 4.8% YoY, the seventh consecutive month of contraction. Cargo Facts Symposium, the quintessential event for stakeholders and key leaders in the global freighter and air cargo industries, will take place Oct. 22-24 at the Grand Hyatt in Nashville . Learn more and register today to take advantage of the early-bird rate before Sept. 5.

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