According to a recent International Air Transport Association (IATA) report, global air cargo markets continued to climb in May, with cargo levels exceeding 2019 levels by 9.4 percent.
Global demand, measured in cargo tonne-kilometers, rose for the fifth straight month, although May’s figures were down somewhat from the 11.3 percent increase in demand in April. North American carriers contributed 4.6 percentage points of May’s growth rate. Airlines in all other regions except Latin America also supported the market growth.
“Propelled by strong economic growth in trade and manufacturing, demand for air cargo is 9.4% above pre-crisis levels,” IATA Director General Willie Walsh said. “As economies unlock, we can expect a shift in consumption from goods to services. This could slow growth for cargo in general, but improved competitiveness compared to sea shipping should continue to make air cargo a bright spot for airlines while passenger demand struggles with continued border closures and travel restrictions.”
However, capacity remains constrained at 9.7 percent below pre-COVID levels due to the ongoing grounding of passenger aircraft, the report found. Capacity rose for the fourth consecutive month to 0.8 percent month-on-month in May, indicating the capacity crunch is unwinding, the report said.
Global economic conditions and favorable supply chain dynamics support growth in the air cargo market, the report said. With global trade rising by .5 percent in April and Purchasing Managers Indices rising in most economies, the market seems on an upward trajectory. Additionally, costs for air cargo shipping have fallen, making it more competitive to sea shipping, the report said.