Following is the International Air Transport Association’s (IATA) latest analysis of the air cargo market, which is also a handy barometer of trade in high-value goods, during the month of October , African airlines, which account for 1.9% of the global air cargo market- saw cargo volumes decrease by 8.3% compared to the same period in 2021.
This was a significant drop from the 0.1 percent growth reported in September 2022 IATA stated in a media release .
Globally, demand saw a 3.5% rise in September 2022 figures but overall it was down 13.6% compared with Oct 2021. According to IATA, a key factor in the performance has been the sharp appreciation of the US Dollar- which has pushed up input and operating costs for manufacturers, freight forwarders and airlines when they are incurred in other currencies.
New export orders, a leading indicator of cargo demand, are shrinking in all markets except China and South Korea, which registered slightly higher new export orders in October.
“ Latest global goods trade figures showed a 5.6% expansion in September, a positive sign for the global economy. This is expected to primarily benefit maritime cargo, with a slight boost to air cargo as well,” IATA stated adding that a strong dollar affects air cargo since many costs are denominated in dollars.
“Air cargo continues to demonstrate resilience as headwinds persist. Cargo demand in October — while tracking below the exceptional performance of October 2021– saw a 3.5% increase in demand compared to September. 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,” said Willie Walsh, IATA’s Director General.
