Global Cargo Market Continues Growth Trend
MUMBAI: The International Air Transport Association (IATA) has reported that the global cargo market has experienced a 3.2% increase in demand for January 2025, marking the 18th consecutive month of growth. This growth, measured in cargo tonne-kilometers (CTK), reflects a 3.6% rise in international operations. Meanwhile, cargo capacity also saw a significant boost, rising by 6.8% compared to January 2024.
Demand and Capacity Trends
January’s growth in the air cargo sector, while still positive, indicates a slowdown from the double-digit increases seen in 2024. The IATA noted that yields, although higher than January 2024, fell by 9.9% from December. Additionally, cargo load factors decreased by an average of 1.5 percentage points. IATA Director General Willie Walsh emphasized the importance of monitoring market conditions, particularly in light of potential tariff-driven trade policies from the U.S. administration. “The air cargo industry is well-prepared to adapt to changes in the operating environment,” he stated. The report highlighted several positive indicators in the broader economic landscape. Industrial production rose by 2.6% year-on-year in December, and global goods trade recorded a 3.3% increase for the ninth consecutive month. The Purchasing Managers Index (PMI) for global manufacturing output exceeded the growth threshold, reaching 50.62 in January, the highest since July 2024.
Regional Performance Insights
Breaking down the performance by region, the Asia-Pacific airlines led the way with a 7.5% year-on-year demand growth for air cargo in January, accompanied by a 10.9% increase in capacity. North American carriers also reported a solid 5.3% growth in demand, with capacity rising by 7.5%. In contrast, European carriers experienced a modest 1.3% increase in demand, while capacity grew by 3.5%. Middle Eastern carriers faced challenges, with an 8.4% year-on-year decrease in demand, the slowest among all regions. Their capacity also fell by 1.2%. Latin America, however, saw the strongest growth, with an impressive 11.2% increase in demand and a 10.6% rise in capacity. African airlines reported a 3.4% decrease in demand, despite a 5.4% increase in capacity.
Economic Factors Influencing Cargo Growth
Several economic factors are contributing to the ongoing growth in the air cargo sector. Rising e-commerce demand in the U.S. and Europe is benefiting airlines, especially as capacity constraints in ocean shipping continue. Consumer inflation rates in both the U.S. and Europe rose slightly in January, with the U.S. at 3.0% and Europe at 2.8%. In China, consumer inflation rebounded to 0.5% after a period of decline.The IATA’s report underscores the resilience of the air cargo industry amid fluctuating market conditions. As the global economy continues to evolve, stakeholders are encouraged to remain vigilant and adaptable to ensure sustained growth in this vital sector.
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