Challenging operating backdrop weighs heavily on global air cargo

Challenging operating backdrop weighs heavily on global air cargo

Compared to a year ago, there are fewer goods being shipped globally now — including by air. Trading environment took a turn for the worse around the global markets, mainly due to a combination of the war in Ukraine and the spread of the Omicron variant in Asia, China in particular.

As a result, energy costs have spiralled and supply chain disruptions exacerbated, feeding inflationary pressure around the globe.

Newly released data for global air cargo markets by the global body of airlines – IATA indicate a drop in demand as a result of the challenging operating backdrop.

Global demand, measured in cargo tonne-kilometres (CTKs), fell 5.2% compared to March 2021 (-5.4% for international operations).

Capacity was 1.2% above March 2021 (+2.6% for international operations). While this is in positive territory, it is a significant decline from the 11.2% year-on-year increase in February.

Asia and Europe experienced the largest falls in capacity.

New export orders, a leading indicator of cargo demand, are now shrinking in all markets except the US.

The Purchasing Managers’ Index (PMI) indicator tracking global new export orders fell to 48.2 in March. This, according to IATA, was the lowest since July 2020.

Global goods trade has continued to decline in 2022,