KUALA LUMPUR: Air cargo demand continues to improve at a slower pace in October than the previous month and remains below previous year levels, according to global air freight markets data released by International Air Transport Association (IATA).
The association in a statement today said the global demand was at 6.2% below previous-year levels in October, an improvement from the 7.8% year-on-year drop recorded in September.
However, it said the pace of recovery in October was slower than in September, with month-on-month demand growing 4.1%.
“Global capacity shrank by 22.6% in October compared to the previous year, nearly four times larger than the contraction in demand, indicating the continuing and severe capacity crunch.
“Strong regional variations continue with North American and African carriers reporting year-on-year gains in demand 6.2% and 2.2% respectively, while all other regions remained in negative territory compared to a year earlier,” it said.
The improving performance, it said was aligned with improvements in key economic indicators, among others, the new export orders component of the manufacturing Purchasing Managers’ Index (PMI) which stayed above the 50-mark for the second time in a row. Results above 50 indicate economic growth.
Global goods trade continued to trend upwards in recent months, according to the World Trade Organisation.
“Demand for air cargo is coming back, a trend we see continuing into the fourth quarter; however the biggest problem is lack of capacity as much of the passenger fleet remains grounded.
“The end of the year is always peak season for air cargo. That will likely be exaggerated with shoppers relying on e-commerce, where 80% of which is delivered by air,” said IATA's director general and chief executive officer Alexandre de Juniac.
Source: The Edge Markets