The International Air Transport Association (IATA) released data for global air cargo markets showing slower growth in January 2022.
IATA says supply chain disruptions and capacity constraints, as well as a deterioration in economic conditions for the sector dampened demand.
Global demand, measured in cargo tonne-kilometers, was up 2.7% compared to January 2021 (3.2% for international operations). This was significantly lower than the 9.3% growth seen in December 2021 (1% for international operations).
Capacity was 11.4% above January 2021 (10.8% for international operations). While this is in positive territory, compared to pre-COVID-19 levels, capacity remains constrained, 8.9% below January 2019 levels. Supply chain disruptions as well as a deterioration in economic conditions for the sector are slowing growth.
“Demand growth of 2.7% in January was below expectation, following the 9.3% recorded in December. This likely reflects a shift towards the more normal growth rate of 4.9% expected for this year. Looking ahead, however, we can expect cargo markets to be impacted by the Russia-Ukraine conflict. Sanction-related shifts in manufacturing and economic activity, rising oil prices and geopolitical uncertainty are converging. Capacity is expected to come under greater pressure and rates are likely to rise. To what extent, however, it is still too early to predict,” said Willie Walsh, IATA’s Director General.