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Luisa Cheshire

BY LUISA CHESHIRE

Wednesday 3rd March 2021, 00:02 Hong Kong

January airfreight demand takes off

January air cargo demand recovers to pre-Covid levels, latest IATA data reveals

January airfreight demand takes off

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The International Air Transport Association (IATA) released January 2021 data for global air cargo markets showing that air cargo demand returned to pre-Covid levels (January 2019) for the first time since the onset of the crisis. January demand also showed strong month-to-month growth over December 2020 levels.

Because comparisons between 2021 and 2020 monthly results are distorted by the extraordinary impact of Covid-19, unless otherwise noted all comparisons are to January 2019 which followed a normal demand pattern, IATA said.

Global demand, measured in cargo tonne-kilometers (CTKs), was up 1.1 per cent compared to January 2019 and +3 per cent compared to December 2020. All regions saw month-on-month improvement in air cargo demand, and North America and Africa were the strongest performers.

The recovery in global capacity, measured in available cargo tonne-kilometers (ACTKs), was reversed owing to new capacity cuts on the passenger side. Capacity shrank 19.5 per cent compared to January 2019 and fell 5 per cent compared to December 2020, the first monthly decline since April 2020.

The operating backdrop remains supportive for air cargo volumes, IATA said. Conditions in the manufacturing sector remain robust despite new Covid-19 outbreaks that dragged down passenger demand. The global manufacturing Purchasing Managers’ Index (PMI) was at 53.5 in January. Results above 50 indicate manufacturing growth versus the prior month.

The new export orders component of the manufacturing PMI – a leading indicator of air cargo demand– continued to point to further CTK improvement. However, the performance of the metric was less robust compared with Q42020 as Covid-19 resurgence negatively impacted export business in emerging markets. Should this continue or expand to other markers, it could weigh on future air cargo growth.

The level of inventories remains relatively low compared to sales volumes. Historically, this has meant that businesses had to quickly refill their stocks, for which they also used air cargo services.

“Air cargo traffic is back to pre-crisis levels and that is some much-needed good news for the global economy," said Alexandre de Juniac, IATA's director general and CEO. "But while there is a strong demand to ship goods, our ability is capped by the shortage of belly capacity normally provided by passenger aircraft. That should be a sign to governments that they need to share their plans for restart so that the industry has clarity in terms of how soon more capacity can be brought online. In normal times, a third of world trade by value moves by air. This high value commerce is vital to helping restore COVID damaged economies—not to mention the critical role air cargo is playing in distributing lifesaving vaccines that must continue for the foreseeable future.” 

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