PRESS ROOM

The U-Freight Group, which has a strong presence in the expedited international airfreight business, notes that IATA has reported that the air cargo industry has now chalked up the sixth consecutive month of double-digit year on year growth thanks to trade growth, e-commerce and oceanfreight capacity constraints.

Total demand in May, measured in cargo tonne-kilometers (CTKs), rose by 14.7% compared to May 2023 levels. There was also a 5.3% rise month on month.

“Air cargo demand moved sharply upwards in May across all regions,” said Willie Walsh, IATA director general. “The sector benefitted from trade growth, booming e-commerce and capacity constraints on maritime shipping. The outlook remains largely positive with purchasing managers showing expectations for future growth.

“Some dampening, however, could come as the US imposes stricter conditions on e-commerce deliveries from China. Increased costs and transit times for shipments under USD800 may deter US consumers and pose significant challenges for growth on the Asia-North America trade lane — the world’s biggest.”

“Similar to the month before, the largest contributors to this strong annual rise in May were carriers from Asia Pacific and Europe, which together contributed roughly two thirds to the increase. These airlines represent, respectively, the largest and third largest region by traffic volume,” said IATA.

Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 6.7% compared to May 2023. “This allowed the industry to set a record in global monthly capacity levels,” commented IATA.

IATA’s report shows that a broadly strengthening economy is supporting air cargo growth. In May, the Purchasing Managers Index (PMIs) for global manufacturing output and new export orders indicated expansion (52.6 and 50.4 respectively), while industrial production and global cross-border trade increased month on month in April (0.5% and 1.5% respectively).

There was a mixed picture for inflation. In the EU and Japan, inflation rates fell to 2.7% and 2.8% respectively, while rising in the US to 3.3%. In contrast, China’s inflation rate remained near zero (0.3%) reflecting weak domestic demand due to high unemployment, slow income growth, and a crisis in the real estate sector – a trend that has persisted since 2023.

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