Emirates SkyCargo Boeing 777F
The air cargo industry continued its upward trajectory in June, with demand surging by a remarkable 14.1% year-on-year (YoY), as the International Air Transport Association (IATA) reported.
This exceptional growth marked the seventh consecutive month of double-digit growth and propelled the industry to a record-breaking first half, surpassing even the heights achieved in the pandemic-impacted year of 2021.
Record-Breaking First Half
Total air cargo demand, measured in cargo tonne-kilometers (CTKs), increased by a staggering 13.4% compared to the first half of 2023. This growth trajectory is even more impressive when considering that it outperforms both 2022 (4.3% increase) and the previously unmatched 2021 levels.
While capacity, measured in available cargo tonne-kilometers (ACTKs), also expanded by 8.8% YoY, it’s evident that demand is outpacing supply, leading to increased load factors.
Regional Performance: Asia Pacific Takes the Lead
- Asia Pacific carriers emerged as the clear leaders in June, with a remarkable 17.0% YoY growth in demand. This region’s dominance was fueled by robust performance across key trade lanes, including Africa-Asia (+37.5%), Europe-Asia (+20.3%), Asia (+21.0%), and Middle East-Asia (+15.1%).
- Europe followed closely with a 16.1% YoY growth, driven by a strong performance in intra-European routes (+16.7%) and growth on the Europe-Middle East (+30.2%) and Europe-Asia (+20.3%) corridors.
- The Middle East maintained its solid performance with a 13.8% YoY increase, with the Europe-Middle East route being the standout performer (+30.2%).
- Latin America and Africa also contributed significantly to the overall growth, with respective increases of 13.1% and 11.8%. Notably, Latin America posted the second-highest increase in international demand growth at 17.2% in June.
- North America, while still in positive territory with a 9.5% YoY growth, lagged behind other regions. However, the Asia-North America trade lane, the world’s largest, saw a substantial 12.8% YoY growth, offering a glimmer of hope for the region.
Economic Indicators, Challenges
The global economic landscape presented a mixed picture in June. While manufacturing output indicated expansion, as reflected by the Purchasing Managers Index (PMI), new export orders contracted, signaling potential challenges ahead.
Inflation remained relatively stable in most major economies, except for China, which experienced near-zero inflation due to weak domestic demand.
Despite these economic headwinds, the air cargo industry demonstrated resilience, weathering challenges such as the US customs crackdown on e-commerce deliveries from China. Factors like maritime shipping constraints and the booming e-commerce sector continued to drive demand for air freight.
Outlook
The exceptional performance in the first half of 2024 positions the air cargo industry on a strong footing for the remainder of the year. However, the evolving economic landscape, geopolitical tensions, and potential capacity constraints warrant close monitoring.
The air cargo industry’s ability to navigate complexities and capitalize on opportunities will be key to maintaining its upward trajectory in the second half of 2024.
