AIR CARGO DEMAND CONTINUOUS TO GROW IN JUNE
On 30 July, the International Air Transport Association (IATA) released its latest data on global air freight markets, highlighting a robust growth in demand.
Compared to June 2023, total demand, measured in cargo tonne-kilometres (CTKs), increased by 14.1% (15.6% for international operations). This marks the seventh consecutive month of double-digit year-on-year growth. Capacity, measured in available cargo tonne-kilometres (ACTKs), increased by 8.8% compared to June 2023 (10.8% for international operations). This increase led to an exceptional first half-year performance for air cargo, with volumes exceeding 2023, 2022, and even the record-breaking 2021 levels.
European carriers experienced a 16.1% year-on-year growth in air cargo demand in June, with intra-European air cargo increasing by 16.7% year-on-year, marking the sixth month in a row of double-digit annual growth. Routes between Europe and the Middle East saw demand growing by 30.3% year-on-year, while those between Europe and North America grew by 9.1% year-on-year.
Mr Willie Walsh, IATA's Director General, indicated that air cargo demand in June experienced a strong growth across all regions and major trade lanes, arguing that maritime shipping constrains and a booming e-commerce sector were among the strong growth drivers. He suggested that air cargo is expected to continue to show its strong performance also in the second half of 2024.
The Loadstar reported this week that as air cargo's peak season nears, limited capacity is causing air freight rates to rise, particularly on major trade routes like north-east Asia to Europe. Ecommerce growth, the Red Sea crisis, and geopolitical tensions are further constraining capacity, pushing air cargo rates to their highest in 18 months. With surcharges removed, base rates continue to rise, and high demand for fast-moving consumer goods (FMCG) and ecommerce is fuelling forward bookings into Q4. DB Schenker has expanded its digital connections with airlines to secure better capacity and rates, urging shippers to align with forwarders to manage costs effectively.