Global air cargo demand up slightly but capacity remains constrained

October 1, 2020

The International Air Transport Association (IATA) released data for global air freight markets in August showing that improvement remains slow while insufficient capacity remains a major issue. The capacity constraint is due to the loss of available belly cargo space as passenger aircraft remain parked.

Global demand, measured in cargo tonne-kilometers, was 12.6% below previous-year levels in August (-14% for international operations). That is a modest improvement from the 14.4% year-on-year drop recorded in July. Seasonally-adjusted demand grew by 1.1% month-on-month in August.

IATA says belly capacity for international air cargo was 67% below the levels of August 2019. This was partially offset by a 28.1% increase in dedicated freighter capacity. Daily widebody freighter utilization is close to 11 hours per day, the highest levels since these figures have been tracked in 2012.

"Air cargo demand improved by 1.8 percentage points in August compared to July. That's still down 12.6% on previous year levels and well below the 5.1% improvement in the manufacturing PMI. Improvement is being stalled by capacity constraints as large parts of the passenger fleet, which normally carries 50% of all cargo, remain grounded, " said Alexandre de Juniac, IATA's Director General and CEO.

"The peak season for air cargo will start in the coming weeks, but with severe capacity constraints shippers may look to alternatives such as ocean and rail to keep the global economy moving,"