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: Minor Hotels Signs First NH Collection Hotel with a Beach Club  Bangkok Airways to Launch Double Daily Sealed Flights Between Bangkok and Phuket  Dara Hotels Group Appoints Weng Aow as Managing Director  WTTC Changes Date of Global Summit in Manila, Philippines  CWT Becomes a Launch Partner for Etihad's Corporate Conscious Choices  SWISS Takes Delivery of First A320neo with Airspace Cabin  Airbnb to Launch Travel Insurance Product  World Rugby Changes Dates of Canada and Los Angeles Sevens Events  350 Delegates Expected to Attend ASEAN Tourism Forum 2022 in Cambodia  BCD Publishes Report on Business Travel Trends for 2022  AirAsia Launches Xpress Parcel Delivery Service in Bangkok, Thailand  Marriott Signs First W Hotel in Greece  Priority Pass Expands App with CarTrawler Partnership  Swire Hotels Upgrades Digital Experience  BA to Launch Flights from LCY to Barcelona, Luxembourg, Milan and Thessaloniki  Boeing Expands Partnerships with German Industry  Travel Risk, COVID19 and Gopass Global - Interview with Mark Radford, CEO  AirAsia Malaysia Expands Domestic Network with New Routes  IHG Takes Over Management of 5-Star Resort in Bali, Indonesia  Singapore Airlines Extends and Expands PPS Club, KrisFlyer Benefits  IATA Reports Global Passenger Traffic for November 2021  Aernnova to Acquire Embraer Industrial Plants in Evora, Portugal  Finnair Cuts 20% of Flights in February  Munich Airport's Latest Statistics Highlight Pent Up Demand for Air Travel  Accor Opens 22nd Novotel Hotel in Thailand  Sabre Expands SafePoint Travel Risk Management Solution  Airlines in Asia Pacific Report Improvement in Passenger Demand  Growth in Global Air Cargo Markets Slows in November  Falko Regional Aircraft Signs eVTOL LOI with Eve  GKN Aerospace Selected as Partner on Gulfstream's New G400 and G800 Jets  Vincent McGrath Returns to UK as Hotel Manager of The Dorchester  World Rugby Appoints Charlotte Samuelson as Chief Operating Officer  Singapore Airlines and NUS Establish Digital Aviation Corporate Laboratory  Minor Hotels Expands Avani+ Brand to Koh Lanta, Thailand  AirAsia to Launch Remote Drone Pilot Training in Malaysia  Azorra Orders 20 A220-300s and 2 ACJ TwoTwenty Aircraft  Phuket Home to Banyan Tree's New Hotel Brand, Homm  Rosewood Opens First Hotel in South America  Marriott Signs W Hotel in Studio City, Macau  France Orders 10 H160s in a Law Enforcement Configuration  Ascott Secured 15,100 Units Across 72 Properties in 2021  FCM Launches Fee-Free Travel Management Programme in Singapore  Mandarin Oriental Shenzhen to Open 20 January  Hamad Int. Airport in Qatar Reports 41.37% Increase in Passengers in 2021  Qatar Airways Cargo Receives CEIV Live Animals Certification from IATA  Iraqi Airways Takes Delivery of First A220-300  Fabio Datteroni Appointed GM of Oetker Collection's First Italian Masterpiece Hotel  Gulf Air Receives Skytrax Five-Star COVID19 Airline Safety Rating  IHG Signs 4-Hotel, 2,709-Room Deal in Vietnam  Marriott Signs W Hotel in Nanjing, China  Greater Bay Airlines Signs Distribution Agreement with Amadeus  Allegiant Air Orders 50 Boeing 737 MAX Aircraft  Four Seasons Appoints Martin Cody as Senior GM of Two Hotels in Africa  IHG Signs Asia's First Vignette Collection Hotel  Comlux Takes Delivery of First ACJ TwoTwenty  Atlas Air Orders Four Boeing 777 Freighters  Air New Zealand Takes Delivery of ATR's 1,600th Aircraft  Emirates to Operate Double Daily Flights to Seychelles  French bee Takes Delivery of First Airbus A350-1000  Gilles Arzur Moves to Mauritius as Executive Chef of Four Seasons at Anahita  Ritz-Carlton Reopens Resort in Grand Cayman Following Major Renovation  QantasLink Launches Flights Between Melbourne and Burnie Airport in Tasmania  airasia ride Launches in Johor Bahru, Ipoh, Seremban and Melaka  Emirates Expands Partnership with Alhosn National Health System  Nok Air to Upgrade Operations with Technology from Radixx and Sabre  Emirates Takes Delivery of 123rd and Final New Airbus A380 Superjumbo  SIA Working with Retailers to Sell Products Made from Upcycled Parts of Retired Aircraft  New Zealand's MICE Options Expand as Te Pae Convention Centre Opens in Christchurch  BA Resumes Flights to Doha; Plans to Expand Partnership with Qatar Airways  SITA Upgrades Technology at Kuala Lumpur International Airport  ATR Receives EASA Approval to Extend Intervals of Type C Maintenance Checks  France's DGA Orders Two Additional Five-Bladed Airbus H145 Helicopters  Thai AirAsia to Launch VTL Flights Between Bangkok and Singapore  Singapore Airlines Signs LOI for 7 Airbus A350 Freighters  Qantas Unveils Plan to Order 40 Single-Aisle Airbus Aircraft  Sabre Appoints Kurt Ekert as President  Cathay Pacific Reports November 2021 Traffic  Qatar Executive Takes Delivery of Three More G650ER Aircraft  Pamela Fletcher to Join Delta as Chief Sustainability Officer  Qatar Airways Resumes Premium Inflight Dining Experience  Novotel Sunshine Coast Resort Completes Major Renovation  British Airways' Short-Haul Subsidiary at London Gatwick to Take Off in 2022  UK Removes All Countries from Red List  Thai Airways Launches VTL Flights Between Bangkok and Singapore  Bangkok Airways to Reopen Int. Passenger Lounges at Suvarnabhumi  Luca Virgilio Returns to London as GM of The Dorchester Hotel  Phuket Hotels Association Appoints Bjorn Courage as President  ACJ TwoTwenty Completes Maiden Flight  IHG Signs Crowne Plaza Hotel in Vinh Yen, Vietnam  Dorchester Collection Names First Hotel in Dubai  United Airlines Expands Partnership with Virgin Australia  Laminaar Aviation Signs MOU with Global Component Asia  Chunxia Gao Joins MSpa as Group Director - Asia  Dusit Partners with World Animal Protection  Pablo Molinari Joins Four Seasons New York Downtown as Hotel Manager  Airbus Expands Presence in Spain with Zero Emission Development Centre  All Nippon Helicopter Takes Delivery of First Airbus H160  HKIA Reports November Traffic; Launches Free Flight Delay Insurance  Qatar Airways Increases Flights to Popular Destinations  1,200 Swimmers Take Part in Hong Kong's New World Harbour Race  Marriott to Open 30 Luxury Hotels in 2022  Whitbread's First Premier Inn Hotel on Guernsey to Open in February  Air Canada's First Dedicated Freighter Enters Service  Travellers Can Now Upload My Vaccine Pass to Air New Zealand Airpoints Profile  IHG Opens 182-Room Holiday Inn Hotel in Queenstown, New Zealand  Cross Signs Two Hotels in Vietnam  Pan Pacific Revamps Discovery Loyalty Programme  The Dorchester Hotel in London to Remain Open During Major Renovation  Etihad Guest FFP Launches Conscious Choices  Zip Partners Sabre to Enable Buy Now Pay Later Options for Travel  IHG Signs Three Hotels with JJW  Brazil's Federal Police Takes Delivery of First of Two Embraer E175 Jets  Dusit Signs Mountain Resort in Hangzhou, China  Indonesia's Artotel Group Acquires Dafam Hotel Management  777 Partners Orders 30 More Boeing 737 MAX Aircraft  Air Astana Takes Delivery of 7th Airbus A321LR  First Students Begin Flight Training at United Aviate Academy in Phoenix  Cathay Pacific Signs Expanded Distribution Agreement with Travelport  HD Videos and Interviews  Podcasts from HD Video Interviews  RSS News Feed and Ticker  Travel Industry News Archives  Travel Trade Shows  High-Res Picture Galleries  Travel News Asia - Latest Travel Industry News 

Receive our Latest Travel News Daily Email free of charge by entering your email address and name in the boxes to the right and clicking subscribe. By subscribing, you agree with Revue's Terms of Service and Privacy Policy. You can also receive the news by WhatsApp, stay updated with our RSS Feed Travel Industry News by TravelNewsAsia.com, and even Add the Headlines to Your Website free of charge. Have questions? Please read our travel news FAQ.

     
Advertising
Advertising
Copyright © 1997-2022 TravelNewsAsia.com