Travel Industry News at TravelNewsAsia.com since 1997
Wed, 12 January 2022

Growth in Global Air Cargo Markets Slows in November

(12 Jan 2022)  IATA has reported that growth in global air cargo markets slowed in November 2021.

Supply chain disruptions and capacity constraints impacted demand, despite economic conditions remaining favorable for the sector.

Global demand, measured in cargo tonne-kilometres (CTKs), was up 3.7% compared to November 2019 (4.2% for international operations), significantly lower than the 8.2% growth seen in October 2021 (9.2% for international operations) and in previous months.

Capacity was 7.6% below November 2019 (-7.9% for international operations), relatively unchanged from October. Capacity remains constrained with bottlenecks at key hubs.

CargoLogicAir Boeing 747-400ERF reg: G-CLBA Picture by Steven Howard of TravelNewsAsia.com Click to enlarge.
CargoLogicAir Boeing 747-400ERF reg: G-CLBA Picture by Steven Howard of TravelNewsAsia.com

Economic conditions continue to support air cargo growth, however supply chain disruptions are slowing growth. Several factors should be noted:

- Labor shortages, partly due to employees being in quarantine, insufficient storage space at some airports and processing backlogs exacerbated by the year end rush created supply chain disruptions. Several key airports, including New Yorks JFK, Los Angeles and Amsterdam Schiphol reported congestion.

- Retail sales in the US and China remain strong. In the US retail sales were 23.5% above November 2019 levels. And in China online sales for Singles Day were 60.8% above their 2019 levels.

- Global goods trade rose 4.6% in October (latest month of data), compared to pre-crisis levels, the best rate of growth since June. Global industrial production was up 2.9% over the same period.

- The inventory-to-sales ratio remains low. This is positive for air cargo as manufacturers turn to air cargo to rapidly meet demand.

- The recent surge in COVID19 cases in many advanced economies has created strong demand for PPE shipments, which are usually carried by air.

- The November global Supplier Delivery Time Purchasing Managers Index (PMI) was at 36.4. While values below 50 are normally favorable for air cargo, in current conditions it points to delivery times lengthening because of supply bottlenecks.

Air cargo growth was halved in November compared to October because of supply chain disruptions, said Willie Walsh, IATAs Director General. All economic indicators pointed towards continued strong demand, but the pressures of labor shortages and constraints across the logistics system unexpectedly resulted in lost growth opportunities. Manufacturers, for example, were unable to get vital goods to where they were needed, including PPE. Governments must act quickly to relieve pressure on global supply chains before it permanently dents the shape of the economic recovery from COVID19.

To relieve supply chain disruptions in the air cargo industry, IATA has called on governments to:

- Ensure that air crew operations are not hindered by COVID19 restrictions designed for air travelers;

- Implement the commitments governments made at the ICAO High Level Conference on COVID19 to restore international connectivity, including for passenger travel. This will ramp-up vital cargo capacity with belly space;

- Provide innovative policy incentives to address labor shortages where they exist; and

- Support the World Health Organization / International Labour Organization Action Group being formed to assure freedom of movement for international transport workers.

November 2021 Air Cargo - Regional Performance

Asia-Pacific airlines saw their international air cargo volumes increase 5.2% in November 2021 compared to the same month in 2019. This was only slightly below the previous months 5.9% expansion. International capacity in the region eased slightly in November, down 9.5% compared to 2019.

North American carriers posted an 11.4% increase in international cargo volumes in November 2021 compared to November 2019. This was significantly below Octobers performance (20.3%). Supply chain congestion at several key US cargo hubs has affected growth. International capacity was down 0.1% compared to November 2019.

European carriers saw a 0.3% increase in international cargo volumes in November 2021 compared to the same month in 2019, but this was a significant drop in performance compared to October 2021 (7.1%). European carriers have been affected by supply chain congestion and localized capacity constraints. International capacity was down 9.9% in November 2021 compared to pre-crisis levels and capacity on the key Europe-Asia route was down 7.3% during the same period.

Middle Eastern carriers experienced a 3.4% increase in international cargo volumes in November 2021, a significant drop in performance compared to the previous month (9.7%). This was due to a deterioration in traffic on several key routes such as Middle East-Asia, and Middle East-North America. International capacity was down 9.7% compared to November 2019, a small decrease compared to the previous month (8.4%).

Latin American carriers reported a decline of 13.6% in international cargo volumes in November compared to the 2019 period. This was the weakest performance of all regions and a significant deterioration from the previous months performance (-5.6%). Capacity in November was down 20.1% on pre-crisis levels.

African airlines saw international cargo volumes increase by 0.8% in November, a significant deterioration from the previous month (9.8%). International capacity was 5.2% lower than pre-crisis levels.

Headlines: Xiamen Airlines Appoints APG as Offline GSA in Kuwait and Saudi Arabia  Hong Kong Airport Reports August's Cargo and Passenger Numbers  Marriott Signs Two Luxury Hotels in Trojena, Saudi Arabia  Honeywell Expands Partnership with Asia Pacific Aircraft Component Services  American Airlines Signs MOU with Embraer to Join Energia Advisory Group  Scoot Signs E190-E2 Pool Program Services Agreement with Embraer  Air Canada Orders 18 Boeing 787-10s; Cancels Order for Two 777 Freighters  Alton Aviation Publishes 2023 - 2033 Global MRO Demand Forecast  Airbus Appoints Christian Scherer as Commercial Aircraft CEO  Amadeus Working with Accenture and Microsoft on New AI-Powered Travel Assistant  IndiGo Launches Fights Between Delhi and Almaty, Kazakhstan  Widerøe Appoints APG as Online GSA in United Kingdom  CapitaLand Ascott Trust Completes Sale of Four Serviced Residences in France  Air Astana Receives Five-Star Rating from APEX  United Airlines Appoints Michael Leskinen as CFO and EVP  Rosewood to Rebrand Three Lodges in New Zealand  New Dual-Branded Hotel in Kuala Lumpur Appoints Senior Management Team  Bonza to Launch Sunshine Coast - Darwin, Gold Coast - Darwin and Melbourne - Alice Springs  IHG Opens First avid Hotel in New York, USA  Austria to Order Embraer C-390 Millennium Multi-Mission Aircraft  Maldivian Orders Two ATR 42-600 Turboprop Aircraft  IndiGo Adds San Francisco to Codeshare Partnership with Turkish Airlines  Virgin Australia Upgrades Retailing Strategy with Sabre Air Price and Ancillary Solutions  TUI Expands Use of SITA OptiClimb to All Five Airlines in Group  Marshall J Orton Joins Fairmont Singapore and Swissôtel The Stamford as GM of F&B  China Airlines Launches Flights Between Taipei and Kumamoto, Japan  IATA FEGA Identifies Potential for LOT Polish Airlines to Reduce Fuel Consumption  British Airways Joins Fight Against Dementia by Partnering Alzheimer's Society  Hong Kong Int. Aviation Academy Launches First Cadet Pilot Programme  IndiGo Becomes Official Airline of Blue Tigers Indian Football Team  Marriott Opens World's Largest Aloft Hotel  Resort in Maldives Partners Karis Scarlette for Baa Atoll Ballet Retreat  Shady Abdelaziz Joins Four Seasons Hotel Tunis as DOSM  Intra-African Passenger Traffic to More Than Quadruple in Next 20 Years  Indian Air Force Takes Delivery of First C295 Aircraft from Airbus  Tailwind Air Appoints APG as Online GSA in USA  S Hotels Renovates and Upgrades IT Infrastructure at Key Properties in UK  AirAsia to Move Flights to New Airport in Siem Reap, Cambodia  Air Peace Orders Five Embraer E175 Aircraft  China Airlines Rewards FFP Members with Monthly Promotions  IHG Opens New-Build Holiday Inn & Suites in Geelong, Australia  Aruba Working with SITA to Upgrade Immigration Experience at AUA  Langham Opens Cordis Hotel in Xuzhou, China  SMBC Aviation Capital Expands 737 MAX Order Pipeline with Deal for 25 Boeing 737-8s  PHI Signs Agreement for 28 Airbus Helicopters  Anantara Chiang Mai Launches Ping River Cruises on Restored Rice Barge  Thaicom Orders a Flexible Telecommunications Satellite from Airbus  Korean Air Begins Transition to Electronic Air Waybills for Cargo  Tim Toerber Joins Assaia as Vice President of Business Development for the Americas  Elbit Systems Launches Capsule that Combines Skylark III with SkyStriker  Singapore Airlines to Resume Flights to Brussels in 2024  Vietnam Airlines Signs MOU for 50 Boeing 737 MAX 8s  Thai Airways Adjusts BKK-HKT Schedule; Increases Flights to China  Elbit Systems to Upgrade IDF's Mini Skylarks  DidaTravel Appoints Ala Andriuta as Head of Destination Marketing  Cathay Pacific to Resume Flights to Chennai, India in 2024  Qatar Airways Partners Chef Ton for Delicious Thai Flavours in Business Class  Air Astana Opens Flight Training Centre at NQZ, Kazakhstan  Vietnam Airlines to Launch Flights Between Saigon and Perth, Australia  SalamAir to Launch Year-Round Flights Between Muscat and Beirut, Lebanon  Air Astana Launches Flights Between Almaty and Tel Aviv, Israel  Hawaiian Airlines Opens Ticket Sales on First Boeing 787-9 Dreamliner Flights  Airlines Report Highest RPK and PLF on Record  IHG Signs Six Hotel Indigo Properties in Europe  Turkish Airlines Increases A350 Order Book with Deal for Ten -900s  IATA Reports Global Air Cargo Data for July 2023  Norse Opens Ticket Sales on Paris - Los Angeles Flights  Cartier Opens Boutique at Sydney Airport in Australia  Mazen Abilmona Appointed GM of Pullman Singapore Hill Street Hotel  Air France-KLM to Establish A350 Component Maintenance Services JV with Airbus  Alan Joyce Brings Forward Retirement; Vanessa Hudson Appointed Qantas Group CEO and MD  SAS Appoints Ginger Hughes as CTO; Paul Verhagen as CCO  Eric Pellen Joins Fairmont Amman as Executive Chef  Bombardier Partners Collins Aerospace for Avionics Upgrade on In-Service Global Jets  IndiGo Revamps Inflight Catering Service  FlyArystan to Launch Almaty - Delhi and Astana - Dushanbe Flights  Marriott Opens First Autograph Collection Hotel in Thailand  Construction Begins on Peppers Gladstone Hotel in Central Queensland, Australia  Natalie Dau to Conduct 4-Day Next-Level Performance Retreat at Chiva-Som, Hua Hin  KAI to Begin Serial Production of Light Armed Helicopters from Airbus  AirAsia Thailand Launches CNX - Lampang and NAN - Phrae Transfer Services  Mantra Melbourne Airport Hotel to Undergo Multi-Million Dollar Refurbishment  Qantas Removes Expiry Date on COVID Credits  Indonesia Signs MOU with Boeing for 24 F-15EX Fighter Jets  Airbus Opens Automated A321XLR Equipping Hangar in Hamburg, Germany  Novotel Living and Ibis Almaty Jetisu Hotels in Kazakhstan - Interview with GM, Arseniy Tagaev  Aeroflot to Increase Flights from Russia to Bangkok and Phuket in Thailand  Matthew Senyard Appointed Lodge Manager of Four Seasons Safari Lodge Serengeti in Tanzania  Marriott Expands Luxury Collection to Japanese City of Nara  Embraer and CAE to Expand Pilot Training Program in Singapore  Marriott Opens First Moxy Hotel in Australia  Hong Kong Airport Reports July Passenger and Cargo Traffic  Few Tickets Still Available for Singapore F1 Grand Prix 2023  Qantas Orders 12 Airbus and 12 Boeing Aircraft  Finnair to Launch Flights Between Rovaniemi and Tromsø  Association of Asia Pacific Airlines Reports July's Passenger and Cargo Traffic  Bonza to Launch Flights Between Gold Coast and Launceston, Tasmania  Ramsey Saarany Appointed GM of Anantara Mina al Arab Ras Al Khaimah Resort  Emirates Reports One of its Busiest Summers Ever  EVA Air Extends Distribution Agreement with Amadeus  Almaty Marathon 2023 - 4K Video Interview with CEO, Saltanat Kazybayeva  Accor Hotels in Australia to Feature Peloton Bikes  Sabre Expands Presence in Fiji and South Pacific Islands with Airline Rep Services  Air New Zealand Orders Two ATR 72-600 Turboprop Aircraft  IndiGo to Operate All International Flights from BLR's Terminal 2  Electric Airport Taxis at Almaty Airport in Kazakhstan - Video Interview with Co-Founder  Elias Pertoft Appointed Pre-Opening GM of Waldorf Astoria Seychelles Platte Island  IHG Opens Third Hotel Indigo in Australia  Embraer E195-E2 Receives Type Certification from CAAC  Jörg Arnold Appointed Cluster Director of Andermatt Hotels and GM of The Chedi Andermatt  Marriott Signs Edition Hotel in Dali, China  Ethiopian Airlines to Launch Thrice Weekly Flights to London Gatwick, England  Boeing Appoints Alvin Liu as President - China  Charles Fisher Moves to Cairo as GM of Four Seasons Hotel  Jirarat Ninpadub Appointed GM of Le Meridien Phuket Mai Khao Beach Resort  IndiGo to Launch Flights Between Delhi and Almaty, Kazakhstan  Accor Signs Second Sebel Hotel in Wellington, New Zealand  IHG Launches Garner a New Midscale Conversion Brand  Finnair Plus to Adopt Avios as Currency and Become a Spend-Based Platform  Two Luxurious Manor Homes Open at Fairmont St Andrews in Scotland  Thai AirAsia Reports Q2 and H1 2023 Results  Klook Survey Highlights Latest Travel Trends of Millennials and Gen Zs in Asia Pacific  Vietnam Airlines Signs MOC with Singapore Tourism Board  Aviation Safety and Training Singapore to Upgrade Flight Simulators with Lido FMS  Pictures from Miss International Queen 2023 Transgender Beauty Pageant in Pattaya, Thailand  Exclusive Video Interviews with 17 Miss International Queen 2023 Contestants  Living With One Eye - Six Years On by Steven Howard  HD Videos and Interviews  Podcasts from HD Video Interviews  RSS Feed - Travel Industry News  Ticker - Travel Industry News  Travel Industry News Archives  Travel Trade Shows  High-Res Picture Galleries  Travel News Asia - Latest Travel Industry News 

Subscribe to our Travel Industry News RSS Feed Travel Industry News RSS Feed from TravelNewsAsia.com. To do that in Outlook, right-click the RSS Feeds folder, select Add a New RSS Feed, enter the URL of our RSS Feed which is: https://www.travelnewsasia.com/travelnews.xml and click Add. The feed can also be used to add the headlines to your website or channel via a customisable applet. Have questions? Please read our Travel News FAQ. Thank you.

     
Advertising
Advertising
Copyright © 1997-2023 TravelNewsAsia.com