THE air freight undergoes a continuous decline in recent months, according toInternational Air Transport Association (IATA) which released data for global markets in May 2023.
There global demand, measured in freight tonne-kilometres (CTK), decreased by 5.2% in May 2023 compared to May 2022 (-6.0% for international operations). At the same time, the ability, measured by available freight tonne-kilometres (ACTK), increased by 14.5% compared to the same period last year, mainly due to continuously increasing cargo hold capacity as demand in the passenger sector is recovering. Capacity is now 5.9% above pre-pandemic levels of May 2019. Air cargo data for all regions is available for download on the IATA website.
For the association, the main factors influencing the demand for air cargo include:
-The global manufacturing Purchasing Managers’ Index (PMI) points to a 1.4% year-on-year contraction in new export orders and a 5.2% year-on-year decline in the production PMI. This suggests a cooling in global manufacturing demand.
-Global trade in goods fell 0.8% in April, due to macroeconomic challenges and supply chain constraints. Trade conditions appeared to favor ocean freight, as container shipping demand contracted 0.2% while air freight demand weakened 6.3% year-on-year.
” Air cargo business conditions continue to be challenging with a 5.2% drop in demand and several economic indicators pointing to weakness. The second half of the year should however bring some improvements. As inflation moderates in many markets, central bank rate hikes are generally expected to moderate. This should help stimulate economic activity with a positive impact on air freight demand “said Willie Walsh, Director General of IATA.