Strong cargo demand continues in July

BUSINESS REPORTER

Middle Eastern carriers posted an 11.3 per cent rise in international cargo volumes in July 2021 versus July 2019, the International Air Transport Association (IATA) said in a report of global air cargo markets, which showed that demand continued its solid growth trend.

Global demand, measured in cargo tonne-kilometres (CTKs), was up 8.6 per cent compared to July 2019. Overall growth remains strong compared to the long-term average growth trend of around 4.7 per cent.

The pace of growth slowed slightly compared to June which saw demand increase 9.2 per cent (against pre-Covid-19 levels), according to the report. Capacity continues to recover but is still 10.3 per cent down compared to July 2019, it said.

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. Further, 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. IATA (International Air Transport Association) represents some 290 airlines comprising 82 per cent of global air traffic.