The International Air Transport Association (IATA) has reported that global air cargo demand, as measured in cargo tonne-kilometres (CTKs), decreased 13.7% in November 2022 compared to the same month in 2021, with international operations experiencing a drop of 14.2%.
Available cargo tonne-kilometres (ACTK) capacity was also down 1.9% year-on-year, marking the second consecutive monthly contraction since April 2022. International cargo capacity decreased slightly by 0.1% compared to November 2021. On a year-over-year basis, total demand was down 10.1% compared to November 2019, while capacity was reduced by 8.8%.
Several factors were noted by IATA as contributing to the current market conditions, including stable export orders in October for major economies, except in Germany, the US, and South Korea, where orders increased; the growth of maritime cargo at 3.3% in October, likely at the expense of air cargo; a strong US dollar adding cost pressure on expenses like jet fuel, which is already at high levels; and declining consumer and producer price indexes in the G7 countries.
“Air cargo performance softened in November, the traditional peak season. Resilience in the face of economic uncertainties is demonstrated with demand being relatively stable on a month-to-month basis. But market signals are mixed. November presented several indicators with upside potential: oil prices stabilised, inflation slowed and there was a slight expansion in goods traded globally. But shrinking export orders globally and China’s rising Covid cases are cause for careful monitoring,” said Willie Walsh, IATA’s Director General.