World Demand for Worldwide Air Cargo Elevated by 7.4% in 2021

(26 Jan 2022)
IATA’s information for international air freight
markets exhibits that full-year demand for air cargo elevated by
6.9% in 2021, in comparison with 2019 (pre-COVID19 ranges) and 18.7%
in comparison with 2020 following a robust efficiency in December 2021.

The expansion was the second greatest enchancment in year-on-year demand
since IATA began to observe cargo efficiency in 1990 (behind
2010’s 20.6% achieve), outpacing the 9.8% rise in international items commerce
by 8.9 share factors.

World demand in 2021, measured in cargo tonne-kilometers
(CTKs), was up 6.9 % in comparison with 2019 (7.4% for worldwide

Capability in 2021, measured in out there cargo
tonne-kilometers (ACTKs), was 10.9% beneath 2019 (12.8% for
worldwide operations). Capability stays constrained with
bottlenecks at key hubs.

ULDs at Noi Bai Int. Airport in Hanoi, Vietnam. Image by Steven Howard of

In December, international
demand was 8.9% above 2019 ranges (9.4% for worldwide
operations), a major enchancment from the three.9%
enhance in November and one of the best efficiency since April 2021
(11.4%). World capability in the course of the month was 4.7% beneath 2019 ranges (-6.5% for
worldwide operations).

The dearth of obtainable capability contributed to
elevated yields and revenues, offering assist to airways and
some long-haul passenger companies within the face of collapsed
passenger revenues. In December 2021, charges had been nearly 150% above
2019 ranges.

Financial situations proceed to assist air cargo

– World items commerce rose 7.7% in November (newest
month of knowledge), in comparison with pre-crisis ranges. World industrial
manufacturing was up 4.0% over the identical interval;

– The inventory-to-sales ratio stays low, a optimistic
for air cargo as producers flip to air cargo to quickly meet

– The fee-competitiveness of air cargo relative
to that of sea-container transport stays favorable; and

– The latest surge in COVID19 instances in lots of
superior economies has once more created robust demand for PPE shipments,
that are normally carried by air.

Provide chain points that slowed the tempo of development
in November stay as headwinds:

– Labor shortages, partly on account of staff being
in quarantine, inadequate cupboard space at some airports and
processing backlogs proceed to place stress on provide chains; and

– The December international Provider Supply Time
Buying Managers Index (PMI) was at 38. Whereas values beneath 50
are usually favorable for air cargo, in present situations it
factors to supply occasions lengthening due to provide

“Air cargo had a stellar yr in 2021. For a lot of
airways, it offered an important income as passenger
demand remained within the doldrums on account of COVID19 journey
restrictions. Development alternatives, nevertheless, had been misplaced as a result of
pressures of labor shortages and constraints throughout the logistics
system. General, financial situations do level in the direction of a robust
2022,” mentioned Willie Walsh, IATA’s Director Common.

December noticed a aid in provide chain points that
enabled an acceleration of cargo development.

“Some aid on provide
chain constraints occurred naturally in December as volumes
decreased after peak transport exercise ended upfront of the
Christmas vacation. This freed capability to accommodate
front-loading of some Lunar New Yr shipments to keep away from potential
disruptions to flight schedules in the course of the Winter Olympic video games.
And general December cargo efficiency was assisted by further
belly-hold capability as airways accommodated an anticipated year-end
increase to journey. As shortages of labor and storage capability
stay, governments should hold a pointy deal with provide chain
constraints to guard the financial restoration,” Walsh added.

Sturdy variations had been evident within the regional
efficiency of air cargo in 2021 in comparison with 2019.

North American
carriers had been the strongest performers, reporting an annual
enhance in worldwide demand of 20.2%. Center East and African
carriers additionally reported double digit development in worldwide demand
in 2021 (10.6% and 11.3%, respectively) in comparison with 2019.
Asia-Pacific and European carriers noticed worldwide demand rise
3.6% in 2021 in comparison with 2019. And Latin American carriers had been
the one ones to file a contraction in worldwide demand of
15.2% in comparison with 2019.

Asia-Pacific airways reported an increase in
worldwide demand of three.6% in 2021 in comparison with 2019 and a fall
in worldwide capability of 17.1%. In December airways within the
area posted an 8.8% enhance in worldwide demand in comparison with
2019. Demand for items manufactured within the area stays robust,
together with PPE. Worldwide capability remained constrained in
December down 10% in comparison with the identical month in 2019.

North American carriers posted a 20.2% enhance in
worldwide demand in 2021 in comparison with 2019 and a development in
worldwide capability of 0.2%. The area was the one one to
file a development in capability in 2021 in comparison with 2019. In December
carriers within the area posted a rise of 20.5% in
worldwide demand. The area’s carriers proceed to learn
from robust shopper demand for items. Worldwide capability grew
6.2% in comparison with December 2019.

European carriers reported a 3.6% enhance in
worldwide demand in 2021 in comparison with 2019 and a fall in
capability of 17.4%. In December airways posted a rise in
worldwide demand of 6% in comparison with 2019. Worldwide
capability was down 5.9% in December 2021 in comparison with pre-crisis.
European carriers have been considerably affected by provide chain
and airport congestion and localized capability constraints.

Center Japanese carriers reported a rise in
worldwide demand of 10.6% in 2021 in comparison with 2019 and a fall
in worldwide capability of 10.1%. Development decelerated in the direction of the
year-end, partly pushed by a downward pattern in volumes on the
giant Center East-Asia route. In December airways within the area
recorded a 5.7% enhance in worldwide demand in comparison with
December 2019. Worldwide capability decreased by 9.2% in
December in comparison with the identical month in 2019.

Latin American carriers reported a decline in
worldwide demand of 15.2% in 2021 in comparison with 2019 and a fall
in capability of 30.2%. Airways registered in Latin America had a
difficult yr, as a number of had been engaged in prolonged restructuring
processes. That mentioned, the restructuring processes are coming to an
finish, and December’s efficiency was one of the best of the yr, with
carriers within the area reporting a 2.9% decline in worldwide
demand in comparison with December 2019. This was a major
enchancment on the 13.4% decline the earlier month. Capability
remained closely constrained in December, down 26.1% on pre-crisis

African airways noticed worldwide demand develop
11.3% in 2021 in comparison with 2019 and a fall in worldwide
capability of 14.6%. Development within the area has been dynamic for many
of the yr, pushed by the power of the Africa-Asia route. In
December, worldwide demand grew by 7.6% year-on-year and
worldwide capability fell 19.4%.


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