Air cargo demand grows by double digits for 8th month

Air cargo demand continues to show strong annual growth. July was the eighth consecutive month of double-digit year-over-year growth, reaching levels not seen since the record peaks of 2021. Demand, measured in cargo tonne kilometers (CTK), rose 13.6% YoY in July and 14.3% YoY for international operations, according to data released this week by IATA . Capacity, measured in available CTKs, rose 8.3% YoY and 10.1% YoY for international operations. “This was largely related to the growth in international belly capacity, which rose 12.8% on the strength of passenger markets and balancing the 6.9% growth of international freighter capacity,” IATA stated. However, the increase in belly capacity was the lowest in 40 months and the growth in freighter capacity was the highest since January, according to IATA. E-commerce, Red Sea disruptions Increasing e-commerce and disruptions to ocean shipping , mainly originating in the Red Sea, are supporting the growth demand in air cargo. “The air cargo business continues to benefit from growth in global trade, booming e-commerce and capacity constraints on maritime shipping,” IATA Director General Willie Walsh said in the release. “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.” The release highlighted the following operating environment factors: July’s Purchasing Managers’ Index (PMI) for global manufacturing output indicated expansion at 50.2. Meanwhile, the global new export orders PMI continued to hover at 49.4. A PMI above 50 indicates growth. Industrial production stayed level in July month over month, and global cross-border trade increased 0.7% MoM. Inflation remained relatively stable in July with inflation rates of 2.9% in the United States, 2.8% in Japan and 2.8% in the European Union. China’s inflation rate increased 0.3 percentage points to 0.6%, its highest level in five months. [caption id="attachment_57144693" align="alignnone" width="1361"] (Courtesy/IATA)[/caption] Asia Pacific Asia-Pacific airlines saw demand grow 17.6% YoY in July, the strongest of all regions. Demand grew: 19.8% YoY on the within-Asia trade lane; 17.9% YoY on the Europe-Asia trade lane; 15.9% YoY on the Middle East-Asia trade lane; and 15.4% YoY on the Asia-Africa trade lane. Capacity increased 11.3% YoY. North America North American carriers saw demand grow 8.7% YoY. Growth was partially hampered by flight cancellations and airport closures in the U.S. and the Caribbean due to Hurricane Beryl , according to IATA. Demand on the Asia-North America trade lane, the largest trade lane by volume, grew 10.8% YoY and demand on the North America-Europe route rose 5.3% YoY. July capacity increased 7% YoY. Europe European carriers saw demand grow 13.7% YoY. Demand grew: 32.2% YoY on the Middle East-Europe trade lane; 17.9% YoY on the Europe-Asia trade lane, the second largest trade lane by volume; and 15.5% YoY on the within-Europe trade lane. July capacity increased 7.6% YoY. Middle East Middle Eastern carriers saw demand grow 14.7% YoY. Capacity increased 4.4% YoY. Latin America Latin American carriers saw demand grow 11.1% YoY. As in North America, growth was affected by Hurricane Beryl . Capacity increased 9.4% YoY. Africa African airlines saw demand grow 6.2% YoY, the lowest of all regions and Africa’s lowest recorded figure in 2024. Capacity increased 10.5% YoY.

Air cargo demand grows by double digits for 8th month

Asia Pacific saw most July growth at 17.6%; Africa saw least at 6.2%

United Airlines raises Alaska-Hawaiian merger concerns with DOT

PEMCO’s Andrews joins Cargo Facts Symposium 2024

Related Posts

June cargo traffic data shows growth in every region but Africa

Capacity index growth levels off in June, July

Trans-Pacific AI-related cargo demand to remain robust through yearend

PEMCO’s Andrews joins Cargo Facts Symposium 2024

Cargo Facts Free Newsletters

Cargo Facts Connect Podcast

Follow Us

Welcome Back!

Retrieve your password