Air Cargo Demand Softens in November – IATA

(Geneva) – The International Air Transport Association (IATA) released data for November 2022 global air cargo markets showing that on a year-on-year basis compared with Nov 2021, African airlines saw actual cargo volumes flown decreased by 6.3% . However ,this was an improvement in performance compared to the -8.3% decline in October. Cargo capacity was 11.4% below November 2021 levels.

IATA explained that  global new export orders, a leading indicator of cargo demand, were stable in October. For major economies, new export orders are shrinking except in Germany, the US, and South Korea, where they grew.  

“Global goods trade expanded by 3.3% in October. Given the softening in air cargo demand, this suggests that maritime cargo was the primary beneficiary. The US dollar has appreciated sharply, adding cost pressure as many costs are denominated in US dollars. This includes jet fuel, which is already at elevated levels,” IATA stated in a media release. 

“Air cargo performance softened in November, the traditional peak season. Resilience in the face of economic uncertainties is demonstrated with demand being relatively stable on a month-to-month basis. But market signals are mixed. November presented several indicators with upside potential: oil prices stabilized, inflation slowed and there was a slight expansion in goods traded globally. But shrinking export orders globally and China’s rising COVID cases are cause for careful monitoring,” said Willie Walsh, IATA’s Director General.

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