Air freight demand decreased in September

After a contraction among major economies, the global Purchasing Managers' Index (PMI) for new export orders also fell (for the third consecutive month) to lowest in two years.

The latest global goods trade figures show a 5.2% increase in August, a positive sign for the global economy. This is expected to benefit mainly marine cargo, while also increasing slightly for air cargo.

Oil prices remained steady in September and jet fuel prices were down from their peak in June. The consumer price index was steady in the G7 countries in September, but at a multi-decade high of 7,7%. Inflation in producer (input) prices slowed to 13.7% in August.

Willie Walsh, IATA Director General, said: “At the consumer level, with travel restrictions lifting post-pandemic, people are likely to spend more on vacation travel and less on e-commerce. And at the macro-level, increasing recession warnings are likely to have a negative impact on the global flows of goods and services, balanced slightly by a stabilization of oil prices."

“Against this backdrop, air cargo is bearing up well. And a strategic slow-down in capacity growth from 6.3% in August to 2.4% in September demonstrates the flexibility the industry has in adjusting to economic developments."

In its analysis of the region's performance for the month, IATA said Asia-Pacific airlines saw their air cargo volumes drop 10.7% in September 2022 compared to the same period in 2021. And, the volume in September this year has also decreased by 8.3% compared to the previous August.

Airlines in the region continue to be affected by the conflict in Ukraine, labor shortages and lower levels of commercial and manufacturing activity due to Omicron-related restrictions in China. Available capacity in the region increased by 2.8% compared to 2021.

North American carriers saw a 6.0% decrease in cargo volume in September 2022 compared to the same period in 2021. September throughput was also down 3.4% compared to August. Capacity increased 4.6. % compared to September 2021.

European carriers saw a 15.6% decrease in cargo volume in September 2022 compared to the same month of 2021. September volume was also down 15.1% compared to August. This is attributed to war in Ukraine.

Labor shortages and high inflation, especially in Turkey, also affected shipping volumes. Capacity increased by 0.2% in September 2022 compared to the same period in 2021.

Middle Eastern carriers saw a 15.8% drop in volume in September 2022 compared to the same period a year earlier. This is the largest decrease compared to other regions. Middle Eastern carriers also fell 11.3% in September from the previous month.

The drop in cargo volumes to/from Europe has affected regional activity. Capacity decreased by 2.8% compared to September 2021.

Latin American carriers reported a 10.8% increase in cargo volume in September 2022 compared to September 2021. This was the strongest increase in activity compared to other regions. Airlines in the region have shown optimism by introducing new services and capacity. Some airlines are investing in more aircraft for air transport in the coming months. Capacity in September increased by 18.4% compared to the same period in 2021.

African airlines saw a 0.1% increase in cargo volume in September 2022 compared to the same period in 2021. This is a slight decrease from the growth recorded in the previous month of 1. ,0%. Capacity is 4.1% lower than September 2021 levels.

Source: Phaata.com (According to AirCargoNews)

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