Global cargo demand up by 9.4% in Oct 2021 over Oct 2019: IATA

The data shows demand continued to be well above pre-crisis levels and capacity constraints have eased slightly, IATA said in a press release.  

Economic conditions continue to support air cargo growth but are slightly weaker than in the previous months.

Supply chain disruptions and the resulting delivery delays have led to long supplier delivery times. This typically results in manufacturers using air transport, which is quicker, to recover time lost during the production process. The global supplier delivery time purchasing managers index (PMI) reached an all-time low of 34.8 in October (values below 50 are favorable for air cargo), IATA said.

Relevant components of the October PMIs (new export orders and manufacturing output) have been in a gradual slowdown since May but remain in favorable territory.

The inventory-to-sales ratio remains low ahead of the peak year-end retail events such as Christmas. This is positive for air cargo as manufacturers turn to air cargo to rapidly meet demand, the association said.

Global goods trade and industrial production remain above pre-crisis levels. The cost-competitiveness of air cargo relative to that of container shipping remains favorable.

“The impact of government reactions to the Omicron variant is a concern. If it dampens travel demand, capacity issues will become more acute….Restrictions will not stop the spread of Omicron. Along with urgently reversing these policy mistakes, the focus of governments should be squarely on ensuring the integrity of supply chains and increasing the distribution of vaccines,” said Willie Walsh, IATA’s director general.

Fibre2Fashion News Desk (DS)