Strong cargo demand continued in July, says IATA

Strong cargo demand continued in July, says IATA
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KUALA LUMPUR (Sept 1): Global demand, measured in cargo tonne-kilometers (CTKs), was up 8.6% compared to July 2019, according to the International Air Transport Association (IATA).

In a statement yesterday, IATA said that overall growth remains strong compared to the long-term average growth trend of around 4.7%.

It said the pace of growth slowed slightly compared to June which saw demand increase 9.2% (against pre-COVID-19 levels).

IATA said capacity continued to recover but is still 10.3% down compared to July 2019.

It explained that economic conditions continued to support air cargo growth, whereby the July export orders component of the manufacturing Purchasing Managers Indices (PMIs) was 52.7%,

indicating a short-term boost to demand if those orders are shipped by air.

It said the inventory-to-sales ratio remains low ahead of the peak year-end retail season.

IATA Director General Wille Walsh said July was another solid month for global air cargo demand.

“Economic conditions indicate that the strong growth trend will continue into the peak year-end demand period.

“The Delta variant of COVID-19 could bring some risks. If supply chains and production lines are disrupted, there is potential for a knock-on effect for air cargo shipments,” said Walsh.