The International Air Transport Association (IATA) has released data for July 2023 global air cargo markets, showing a continuing trend of recovering growth rates since February. According to IATA “July air cargo demand was tracking just 0.8% below the previous year’s levels. Although demand is now basically flat compared to 2022, this is an improvement on recent months’ performance that is particularly significant given declines in global trade volumes and rising concerns over China’s economy.” According to the report “African airlines had the strongest performance in July 2023, with a 2.9% increase in cargo volumes compared to July 2022. Notably, Africa–Asia routes experienced significant cargo demand growth (10.3%). Capacity was 11.0% above July 2022 levels.”
Global demand, measured in cargo tonne-kilometers (CTKs*), tracked at 0.8% below July 2022 levels (-0.4% for international operations). This was a significant improvement over the previous month’s performance (-3.4%).
Capacity, measured in available cargo tonne-kilometers (ACTKs), was up 11.2% compared to July 2022 (8% for international operations). The strong uptick in ACTKs reflects the growth in belly capacity (29.3% year-on-year) due to the summer season.
While noting several factors in the operating environment, IATA stated: “Compared to July 2022, demand for air cargo was basically flat. Considering we were 3.4% below 2022 levels in June, that’s a significant improvement. And it continues a trend of strengthening demand that began in February. How this trend will evolve in the coming months will be something to watch carefully. Many fundamental drivers of air cargo demand, such as trade volumes and export orders, remain weak or are deteriorating. And there are growing concerns over how China’s economy is developing. At the same time, we are seeing shorter delivery times, which is normally a sign of increasing economic activity. Amid these mixed signals, strengthening demand gives us good reason to be cautiously optimistic,” said Willie Walsh, IATA’s Director General.
Air cargo market in detail
| JULY 2023 (%YEAR-ON-YEAR) | WORLD SHARE *1 | CTK | ACTK | CLF (%-PT) *2 | CLF (LEVEL) *3 |
|---|---|---|---|---|---|
|
Total Market
|
100%
|
-0.8%
|
11.2%
|
-5.1%
|
42.1%
|
|
Africa
|
2.0%
|
2.9%
|
11.0%
|
-3.3%
|
41.7%
|
|
Asia Pacific
|
32.4%
|
2.7%
|
26.0%
|
-10.4%
|
45.7%
|
|
Europe
|
21.8%
|
-1.5%
|
5.3%
|
-3.3%
|
47.2%
|
|
Latin America
|
2.7%
|
0.4%
|
10.0%
|
-3.1%
|
32.2%
|
|
Middle East
|
13.0%
|
1.5%
|
17.1%
|
-6.3%
|
41.1%
|
|
North America
|
28.1%
|
-5.2%
|
0.5%
|
-2.2%
|
37.0%
|
(*1) % of industry CTKs in 2022 (*2) Year-on-year change in load factor (*3) Load factor level