October 2024 Sees 9.8% Increase in Air Cargo Demand: 15th Straight Month of Growth
In October 2024, the global air cargo industry experienced a remarkable 9.8% increase in demand, marking the 15th consecutive month of growth. These findings were released by the International Air Transport Association (IATA), highlighting the ongoing robust performance of the air cargo market on a global scale.
Continuing Growth Trends
The data revealed that total demand, measured in cargo tonne-kilometers (CTKs), surged by 9.8% compared to October 2023 levels, with international operations seeing an even higher increase of 10.3%. This growth trend was accompanied by a 5.9% rise in available cargo tonne-kilometers (ACTKs), indicating an increase in capacity to meet the escalating demand. Notably, international belly capacity saw an 8.5% surge, while dedicated freighter capacity rose by 5.6%.
According to Willie Walsh, IATA’s Director General, “Air cargo markets continued their strong performance in October, with demand rising 9.8% year-on-year and capacity up 5.9%.” He also highlighted the significant rise in global air cargo yields, emphasizing the industry’s resilience amidst changing geopolitical and economic landscapes.
Operational Environment Insights
Various factors in the operational environment played a crucial role in shaping the air cargo market dynamics. Industrial production saw a 1.6% increase in September, while global goods trade surged by 2.4% for the sixth consecutive month. This growth was partly driven by businesses stockpiling inventory in anticipation of potential disruptions, such as the US port strike.
Moreover, global manufacturing activity rebounded in October, indicating overall growth. While the Purchasing Managers Index (PMI) for global manufacturing output surpassed the 50-mark, signifying growth, the PMI for new export orders remained below 50, indicating lingering uncertainty in global trade.
Regional Performance Highlights
In terms of regional performance, Asia-Pacific airlines led the pack with a 13.4% year-on-year demand growth for air cargo in October, followed by North American carriers at 9.5%. European carriers and Middle Eastern carriers also saw notable growth rates, while Latin American carriers experienced the strongest growth among the regions at 18.5%. African airlines had the slowest growth at 1.6%.
Trade Lane Growth and Market Analysis
International trade lanes witnessed exceptional traffic levels, with a 10.3% year-on-year increase in October. Key routes such as Asia-North America, Europe-Asia, and Middle East-Europe reported significant growth, reflecting the rising e-commerce demand in the US and Europe amidst ongoing capacity constraints in ocean shipping.
In conclusion, the October 2024 data showcases the continued resilience and vitality of the global air cargo industry, setting the stage for a promising outlook. As the industry navigates through evolving economic and geopolitical landscapes, adaptation and innovation remain key drivers of success in the dynamic air cargo market.