Global Air Cargo Demand Up By 4.4% in March 2021 - By Daisy BARRO

 

The International Air Transport Association (IATA) has released data for global air cargo markets for the month of March, 2021, revealing that demand for air cargo was at an “all time high” during the said month. The following analysis compares data recorded in March 2021 with that of March 2019 (and not March 2020) because of the COVID-19 pandemic and its impacts which were heaviest between 2020 and early 2021.

The increase (4.4%) in cargo demand (measured in cargo tonne-kilometers – CTKs) recorded in March 2021 was significantly higher compared to March 2019. Growth rose by 0.4% compared to February 2021, though this increase in demand is considered insignificant compared to the growth recorded in February 2019 (9.2%).

Global capacity (measured in available cargo tonne-kilometers – ACTKs) continued its recovery in March 2021 and was up 5.6% compared to the previous month. Still, capacity remained at 11.7% below that recorded before COVID-19 (March 2019) – a situation which has been linked to the serial grounding of passenger aircraft during the lockdown period.

In Africa, cargo demand in March 2021 rose by 24.6% (the strongest of all regions) compared to March 2019 – growth which is linked to the vigorous expansion of trade lanes between Africa and Asia. International capacity recorded on the continent dropped by 2.1% as compared to March 2019.

Based on the above figures, IATA has established that the substantial boost in global cargo demand recorded in March 2021 was due to the following factors: a 0.3% increase in global trade in February 2021; increase in demand for exports in January and February, 2021 (especially in developed countries); better delivery time for manufactured goods (which happens in an effort to reduce shipping time, both of which indicate an increase in demand).

IATA’s Director General, Willie Walsh had this to say about the above findings: “Air cargo continues to be the bright spot for aviation. Demand reached an all-time high in March, up 4.4% and airlines are taking all measures to find the needed capacity. The crisis has shown that air cargo can meet fundamental challenges by adopting innovations quickly. That is how it is meeting growing demand even as much of the passenger fleet remains grounded.”

The DG went on to say that the sector needs to retain this momentum post-crisis in order to drive its long-term efficiency by going increasingly digitizing its products and services.