Air cargo’s growth streak shows a continuous expansion until July. The International Air Transport Association ( IATA) has announced the news by releasing 2024 data for the Air cargo’s market strong annual growth in demand.
Willie Walsh, IATA’s director general has stated :
Air cargo reached unprecedented levels in the first seven months of the year, experiencing significant expansion in all geographic areas. The company industry is still reaping the rewards of the surge in global trade, the thriving e-commerce sector, and the limitations on shipping capacity by sea. There is still the peak season ahead, indicating a very robust year for air cargo. Airlines have demonstrated their ability to adapt to changing demand patterns despite political and economic uncertainties.
Eight Months of Double-digit Growth
The air cargo industry continued its remarkable growth in July measured in cargo tonne-kilometers (CTKs), surging by 13.6% compared to the same period in 2023. This marks the eighth consecutive month of double-digit year-on-year growth. It is further solidifying the industry’s resilience and strength. International operations experienced even more pronounced growth, with a 14.3% increase in demand during the same period.
Moreover, Several factors contributed to this sustained growth, including a robust global economy, the ongoing expansion of e-commerce, and ongoing capacity constraints in maritime shipping. This has created a favorable environment for air cargo, driving demand to new heights.
The demand for air cargo has increased. However, the available cargo capacity has also gone up, although at a slower rate. This increase was mainly due to more space in the cargo holds of passenger aircraft. While this growth was the slowest in 40 months, it helped offset the rise in freighter capacity, which was the highest in over a year. This suggests that airlines are effectively adjusting their capacity to meet the growing demand for air cargo transportation.
July Regional Performance
In July, air cargo demand in the Asia-Pacific region grew by an impressive 17.6% compared to the previous year. Trade routes within Asia and those connecting Asia with Europe, the Middle East, and Africa. All these routes showed a significant increase in demand. North American carriers also experienced strong growth, but their performance was hampered by disruptions caused by Hurricane Beryl. Meanwhile, European and Middle Eastern carriers both saw double-digit growth, with the Middle East-Europe trade route leading the way.
Latin American carriers experienced a modest growth rate, while African airlines had the lowest growth among all regions. Despite the challenges posed by Hurricane Beryl, the overall trend in the air cargo industry remains positive, with strong demand and increasing capacity across most regions.
In conclusion, The continued strong performance of the air cargo industry is a testament to its ability to adapt to changing market conditions and capitalize on emerging opportunities. As the peak season approaches, the industry is poised for further growth, with a great demand for goods and products during the holiday season.
How do you see the increase in demand in the air cargo industry? Do you expect more next year?
