Supply chain disruptions stall global cargo growth in Nov 2021: IATA

This was significantly lower than the 8.2 per cent growth seen in October 2021 (9.2 per cent for international operations) and in previous months. Capacity was 7.6 per cent below November 2019 and remains constrained with bottlenecks at key hubs, including New York’s JFK, Los Angeles, and Amsterdam Schiphol, the International Air Transport Association (IATA) said in a press release.

In general, the economic conditions continue to support air cargo growth. The retail sales in the United States and China remain strong. In the United States, retail sales were 23.5 per cent above November 2019 levels. And in China online sales for Singles’ Day were 60.8 per cent above their 2019 levels. Global goods trade rose 4.6 per cent in October (latest month of data), compared with pre-crisis levels, the best rate of growth since June. Global industrial production was up 2.9 per cent over the same period. The inventory-to-sales ratio remains low. This is positive for air cargo as manufacturers turn to air cargo to rapidly meet demand. The recent surge in COVID-19 cases in many advanced economies has created strong demand for PPE shipments, which are usually carried by air.

“All economic indicators pointed toward continued strong demand, but the pressures of labour shortages and constraints across the logistics system unexpectedly resulted in lost growth opportunities. Manufacturers, for example, were unable to get vital goods to where they were needed, including PPE. Governments must act quickly to relieve pressure on global supply chains before it permanently dents the shape of the economic recovery from COVID-19,” said Willie Walsh, IATA’s director general.

To relieve supply chain disruptions in the air cargo industry, IATA is calling on governments to ensure that air crew operations are not hindered by COVID-19 restrictions designed for air travelers. They should implement the commitments governments made at the ICAO High Level Conference on COVID-19 to restore international connectivity, including for passenger travel. This will ramp-up vital cargo capacity with belly space. There should be provision of innovative policy incentives to address labor shortages where they exist. The governments should support the World Health Organisation / International Labour Organisation Action Group being formed to assure freedom of movement for international transport workers, the release added.

Fibre2Fashion News Desk (RR)