IATA: October Hits Record Volumes, Supply Chains 'Restructure' Amid US Tariff Pressure

The global air cargo industry has just experienced a record October in terms of volume, despite the continuous decline in cargo flows from Asia to North America.

The latest data from the International Air Transport Association (IATA) shows that transport demand, measured in cargo tonne-kilometers (CTKs), increased by 4.1% year-on-year in October. Meanwhile, available capacity rose by 5.1%, leading to a slight 0.5 percentage point dip in the cargo load factor to 47.1%.

This increase marks the eighth consecutive month of growth for the entire industry. However, the growth picture was uneven across trade lanes, as U.S. tariff policies continued to exert pressure on shipping demand on Asia-North America flights.

Commenting on this trend, Willie Walsh, IATA’s Director General, said: “While the Asia-North America trade lane extended its contraction to six months, October saw double-digit or near double-digit growth within Asia, between the Middle East and Europe, and between Europe and Asia.”

This divergence reflects the flexible adaptability of the global logistics market.

Walsh emphasized further: “This shifting growth pattern shows that air cargo is enabling global supply chains to adapt to the impact of US tariffs. This positive news is especially significant as the air cargo sector enters the peak fourth quarter shipping season.”

Shifting Trade Flows

Detailed data on specific trade lanes clearly illustrates this shift:

•    Asia-North America: Demand fell 1.4% year-on-year.

•    Europe-Asia: Impressive growth of 11.7%.

•    Middle East-Asia: Increased by 11.5%.

•    Intra-Asia: Improved by 9%.

Airline Performance by Region

Changes in cargo flows also directly impacted the performance of airlines in each region during October:

•    North American carriers: Recorded a 2.7% decline in cargo traffic year-on-year.

•    African carriers: Enjoyed "explosive" growth of 16.6%.

•    Asia-Pacific carriers: Up 8.3%.

•    Middle Eastern carriers: Up 5.7%.

•    European carriers: Up 4.3%.

•    Latin American carriers: Improved by 2.7%.

Macro Outlook: Caution Amid Uncertainty

Regarding macro indicators, IATA stated that global manufacturing sentiment strengthened slightly in October, with the Purchasing Managers' Index (PMI) rising for the third consecutive month to reach 51.45 points.

However, the association also issued a note of caution: “New export orders deteriorated slightly to 48.31, remaining below the 50-point expansion threshold, reflecting ongoing caution amid tariff uncertainty.”

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Source: Phaata.com (According to Air Cargo News)

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