Data from IATA says that global demand measured in cargo tonne kilometres fell 13.6% year-on-year and capacity was down 0.6% though it is increasing on a month-by-month basis.
Demand is being affected by new export orders shrinking in all markets except China and South Korea, global goods trade expanding which is primarily benefiting maritime cargo, the appreciation of the US dollar to its highest real value since 1986, adding another cost on top of high inflation and jet fuel prices, and inflation in G7 countries remains at the highest level in decades.
Willie Walsh, Director General of IATA, says that cargo demand is below October 2021 but increased 3.5% compared with September.
Walsh says, “This indicates that the year-end will still bring a traditional peak-season boost despite economic uncertainties. But as 2022 closes out it appears that the current economic uncertainties will follow into the New Year and need continued close monitoring.”
Asia-Pacific airlines were down 14.7% due to the war in Ukraine and lower levels of trade and manufacturing due to Omicron-related restrictions in China.
North America was down 8.6% year-on-year and 6% compared to September.
Europe registered the worst performance, down 18.8% due to the war in Ukraine and high inflation, most notably in Turkey.
The Middle East decreased 15% due to stagnant volumes to and from Europe.
Latin America decreased 1.4%, a significant decline compared to September and its first fall since March 2021.
Africa declined 8.3%, a significant decrease on the 0.1% growth seen in September.