We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Air cargo demand slumped in 2022 after “extraordinary” levels in 2021

Air cargo demand slumped in 2022 after “extraordinary” levels in 2021

IATA forecasts further decline in 2023 as many nations fight inflation by cooling their economies.

air cargo uld.jpeg
February 6, 2023
Supply Chain Quarterly Staff
No Comments

Demand for air cargo in 2022 took a significant step back from 2021 levels but closed the year near pre-pandemic levels of 2019, according to statistics released today by the International Air Transport Association (IATA).

Global full-year demand in 2022, as measured in cargo tonne-kilometers (CTKs), was down 8.0% compared to 2021 but was down just 1.6% compared to 2019. Meanwhile, air cargo capacity in 2022 moved in the other direction, finishing the year 3.0% above 2021 as measured in available cargo tonne-kilometers (ACTKs), but declining by 8.2% compared to 2019 (pre-COVID) levels.

Trends also showed that air freight may continue to slow in 2023, since global new export orders, a leading indicator of cargo demand, have been stalled at the same level since October. And new export orders for major economies are shrinking everywhere except for growth hot-spots in Germany, the U.S., and Japan.

One reason for that tepid forecast may be continued efforts by many nations to squeeze inflation rates by slowing down their own economies, IATA said. The Consumer Price Index (CPI) for G7 countries showed inflation of 6.8% for December, a 0.6 percentage point drop compared to the previous month, when that figure was at 7.4% for November. Likewise, inflation as measured by producer (input) prices reduced to 12.7% in October, its lowest level so far in 2022.

“In the face of significant political and economic uncertainties, air cargo performance declined compared to the extraordinary levels of 2021. That brought air cargo demand to 1.6% below 2019 (pre-pandemic) levels,” Willie Walsh, IATA’s director general, said in a release. 

“The continuing measures by key governments to fight inflation by cooling economies are expected to result in a further decline in cargo volumes in 2023 to -5.6% compared to 2019. It will, however, take time for these measures to bite into cargo rates,” Walsh said. “So, the good news for air cargo is that average yields and total revenue for 2023 should remain well above what they were pre-pandemic. That should provide some respite in what is likely to be a challenging trading environment in the year ahead.” 

Despite that quiet cargo environment, airlines also saw passenger demand rebound in 2022 from its pandemic morass. Total traffic in 2022 (measured in revenue passenger kilometers or RPKs) rose 64.4% compared to 2021, bringing the 2022 passenger traffic volume to 68.5% of pre-pandemic (2019) levels. 

“The industry left 2022 in far stronger shape than it entered, as most governments lifted COVID-19 travel restrictions during the year and people took advantage of the restoration of their freedom to travel. This momentum is expected to continue in the New Year, despite some governments’ over-reactions to China’s re-opening,” Walsh said. 

According to IATA, global travel bans during the pandemic had a bigger impact on depressing airlines’ business results than on preventing the spread of the disease. “Let us hope that 2022 becomes known as the year in which governments locked away forever the regulatory shackles that kept their citizens earthbound for so long,” Walsh said. “It is vital that governments learn the lesson that travel restrictions and border closures have little positive impact in terms of slowing the spread of infectious diseases in our globally inter-connected world. However, they have an enormous negative impact on people’s lives and livelihoods, as well as on the global economy that depends on the unfettered movement of people and goods.”
 

 

Air
KEYWORDS IATA - International Air Transport Association
  • Related Articles

    U.S. Bank Freight Payment Index reflects mixed results in Q1, moderation after record levels in 2018

    Global air cargo market rides out turbulent 2022

    Global air cargo volumes slowed their decline in August, raising holiday peak hopes

Recent Articles by Supply Chain Quarterly Staff

IoT vendors say industry needs better collaboration

Survey: only 55% of shippers filled their LTL trucks to full capacity in 2022

Survey: consumers set price cap on paying sustainability premium

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Survey: parcel delivery drivers are frustrated by using their own smartphones for work

  • Survey: most Americans unaware that truckers face shortage of parking spaces

  • Best practices in logistics sustainability

  • Supply chain executives not yet seeing expected results from technology investments

  • Postal Service plans to seize items mailed with fake stamps

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Five tips for parcel success in 2023

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing