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Cargo Newswire

Strong Cargo Demand Continues in July for global Air Cargo markets: IATA

September 2, 2021
in Associations
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The International Air Transport Association (IATA) released July 2021 data for global air cargo markets showing that demand continued its strong growth trend.

As comparisons between 2021 and 2020 monthly results are distorted by the extraordinary impact of COVID-19, unless otherwise noted, all comparisons below are to July 2019 which followed a normal demand pattern.

  • Global demand, measured in cargo tonne-kilometers (CTKs*), was up 8.6% compared to July 2019. Overall growth remains strong compared to the long-term average growth trend of around 4.7%.
  • The pace of growth slowed slightly compared to June which saw demand increase 9.2% (against pre-COVID-19 levels).
  • Capacity continues to recover but is still 10.3% down compared to July 2019.  
  • 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.
    – 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.  

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JULY 2021
% VS JULY 2019
WORLDSHARE1CTKACTKCLF(%-PT)2CLF(LEVEL)3
Total Market100%8.6%-10.3%9.5%54.4%
Asia Pacific32.6%1.2%-19.8%13.6%65.4%
Europe22.3%6.1%-14.1%11.3%59.8%
Latin America2.4%-9.8%-17.7%3.4%38.7%
Middle East13.0%11.3%-6.1%8.4%53.6%
North America27.8%21.2%1.8%7.1%44.3%

(1) % of industry CTKs in 2020   (2) Change in load factor vs same month in 2019    (3) Load factor level

July Regional Performance

Asia-Pacific airlines saw demand for international air cargo increase 4.4% in July 2021 compared to the same month in 2019, and an improvement compared to the previous month’s 3.9% expansion. Demand is being affected by an easing of momentum in key activity indicators in Asia, and by congested supply chains.

North American carriers posted a 20.5% increase in international demand in July 2021 compared to July 2019. This was in line with June’s performance (19.8%) and the strongest of all regions. New export orders and demand for faster shipping times are underpinning North American performance.

European carriers posted a 6.0% increase in demand in July 2021 compared to the same month in 2019. This was a marginal decrease compared to the previous month (6.8%). Manufacturing activity, orders, and supplier delivery times are still favorable to air cargo.

Middle Eastern carriers posted an 11.3% rise in international cargo volumes in July 2021 versus July 2019. This was a decrease compared to the previous month (15.8%). Some routes, however, are still posting strong performance, for example on the large Middle East–Asia trade lanes.

Latin American carriers reported a decline of 10.2% in international cargo volumes in July compared to the 2019 period, an improvement from the -21.5% fall recorded in June. Although Latin America continues to show the weakest regional performance, the comparison with pre-crisis traffic levels has been highly volatile in recent months. Several trade routes to/from Latin America are performing well, such as North-Central and North-South America and Europe-South America, confirming that demand for air cargo in the region is recovering from the crisis.

Tags: Air CargoAsia Pacific AirlinesEuropean CarriersGlobal DemandIATAInternational Air Transport AssociationLatin American CarriersMiddle EasternNorth American Carriers
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Devender Grover

Devender Grover

Devender was born in the year when the Beatles Group was formed. He holds two master’s degrees in English Literature and Public Administration. He also has an Honors degree in English Literature and a post-graduate diploma in Corporate Communications and Public Relations. He was closely associated with the Indian State Transport Undertakings and Ministry of Transport in his role as Corporate Communications and PR specialist for over two decades handling domestic and international organizations. He ventured into business forming his own Media House, Profiles Media Network Private Limited which is now a twenty years old company. Excelling as an editor, Marketing, PR, Anchor, and Advertising specialist, he is now expertly navigating the world of social media. A widely traveled professional internationally, Devender has a deep understanding of the Air Cargo, Cargo Business, Cargo Airports, Freighters and Cargo Industry at large.

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