Source: IATAAir cargo traffic recovers slowly amid insufficient capacity
• Industry-wide cargo tonne-kilometres (CTKs) fell by 12.6% year-on-year in August. Seasonally adjusted volumes are on a soft upward trend but remain far below 2019 levels. International cargo demand improved in all the regions.
• Timely indicators of economic activity – such as manufacturing new export orders – have displayed robust signs of recovery in recent months, despite elevated global new cases of COVID-19.
• The rebound in cargo volumes has been slower than expected based on those metrics. This is mostly because air cargo capacity remains insufficient, with industry-wide available cargo tonne-kilometres (ACTKs) declining by 29.4% in August. International belly capacity is still scarce, and airlines have not been able to raise dedicated freighters capacity as much as needed.
• Air transport has also lost market share of global trade due to competition from cheaper ocean trade, a typical pattern during downturns but not what is usually experienced at the start of an economic upturn.… read more