Air Cargo Demand Grows 8.2% by the End of 2024
The International Air Transport Association (IATA) has released data on global air cargo markets for November 2024, revealing an 8.2% growth in total demand, measured in cargo tonne-kilometers (CTK), compared to November 2023. For international operations, the increase was 9.5%. This marks the 16th consecutive month of expansion in the sector. Meanwhile, capacity, measured in available cargo tonne-kilometers (ACTK), grew by 4.6% during the same period (6.5% for international operations).
The Significance of Air Cargo Growth
The increase in air cargo demand signals economic recovery and greater global trade activity. Factors such as stabilized fuel costs—22% lower than the previous year—have improved industry profitability. Additionally, market conditions have driven a 7.8% increase in yield.
Willie Walsh, IATA’s Director General, stated:
“November was a strong month for air cargo, with demand growing by 8.2%, nearly doubling the 4.6% growth in cargo capacity. While we expect this positive trend to continue into 2025, we must monitor risks such as inflation, geopolitical uncertainties, and trade tensions.”
Impact of Air Cargo Growth
- Boost to International Trade: The expansion of air cargo enhances the transportation of high-value goods, such as technology and electronic components, improving global supply chain efficiency.
- Economic Stability: Higher air cargo demand reflects increased industrial production and goods trade. In October 2024, industrial production rose by 2.1%, while global trade in goods saw its seventh consecutive month of growth, up by 1.6%.
- Optimism in the Logistics Sector: The global manufacturing purchasing managers’ index (PMI) surpassed 50 in November, signaling growth. However, the PMI for new export orders remained below 50, indicating lingering uncertainty in global trade.
Economic Factors Influencing the Sector
Inflation rates have played a role in air cargo demand:
- United States: Consumer price index (CPI) inflation rose by 0.1 percentage points to 2.7% in November.
- European Union: Inflation increased by 0.2 percentage points, reaching 2.5%.
- China: Consumer inflation fell to 0.2%, raising concerns about a potential economic slowdown.
The air cargo sector is poised for continued growth in 2025, driven by economic recovery and logistics digitalization. However, trade tensions and fuel cost volatility could impact market stability. Optimizing supply chain strategies will be crucial for airlines and air cargo companies to capitalize on this growth.
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