 (16)-x-large.webp)
The International Air Transport Association (IATA) said the air cargo sector had a "stellar year" in 2021 with the industry recording the "second biggest improvement" in year-on-year demand since IATA started to monitor cargo performance in 1990.
IATA said full-year demand for air cargo increased by 6.9% in 2021, compared to 2019 (pre-covid levels) and 18.7% compared to 2020 following a strong performance in December 2021.
Global demand — measured in cargo tonne-kilometres (CTKs) — was also up 6.9 % compared to 2019 (7.4% for international operations) although capacity last year remained tight recording a 10.9% drop compared to the level seen in 2019.
IATA said capacity remained constrained with bottlenecks at key hubs.
Elevated rates in 2021
Nonetheless, the airline trade association noted that "improvements were demonstrated in December" with global demand 8.9% above 2019 levels — which was a significant improvement from the 3.9% increase in November and the best performance since April 2021, according to IATA.
Meanwhile, global capacity last year was 4.7% below 2019 levels.
IATA said the lack of available capacity contributed to increased yields and revenues, providing support to airlines and some long-haul passenger services in the face of collapsed passenger revenues.
It said in December 2021, rates were almost 150% above 2019 levels.
It added that economic conditions also continue to be supportive or air cargo growth with inventory-to-sales ratio remaining low and forcing manufacturers to turn to air cargo to rapidly meet demand. IATA said the cost-competitiveness of air cargo relative to that of sea-container shipping "remains favorable."
"Stellar year" for cargo
"Air cargo had a stellar year in 2021. For many airlines, it provided a vital source of revenue as passenger demand remained in the doldrums due to Covid-19 travel restrictions," said Willie Walsh, IATA’s Director General.
"Growth opportunities however were lost due to the pressures of labor shortages and constraints across the logistics system. Overall, economic conditions do point towards a strong 2022," he added.
The IATA chief noted that December saw a relief in supply chain issues that enabled an acceleration of cargo growth.
"Some relief on supply chain constraints occurred naturally in December as volumes decreased after peak shipping activity ended in advance of the Christmas holiday. This freed capacity to accommodate front-loading of some Lunar New Year shipments to avoid potential disruptions to flight schedules during the Winter Olympic games."
"Overall December cargo performance was assisted by additional belly-hold capacity as airlines accommodated an expected year-end boost to travel," Walsh further said.
Regional performance cited
IATA said "strong variations" were evident in the regional performance of air cargo in 2021 compared to 2019.
It said North American carriers were the strongest performers, reporting an annual increase in international demand of 20.2%. Middle East and African carriers also reported double digit growth in international demand in 2021 (10.6% and 11.3%, respectively) compared to 2019.
Meanwhile, Asia-Pacific and European carriers saw international demand rise 3.6% in 2021 compared to 2019. And Latin American carriers were the only ones to record a contraction in international demand of 15.2% compared to 2019.
"Demand for goods manufactured in the region remains strong, including PPE. International capacity remained constrained in December down 10% compared to the same month in 2019," IATA said of demand in APAC, while noting that North America was the only one to record a growth in capacity in 2021 compared to 2019.
"The region’s carriers continue to benefit from strong consumer demand for goods," IATA said, adding that European carriers, on the other hand, "have been significantly affected by supply chain and airport congestion and localized capacity constraints."
IATA said airlines registered in Latin America had a "challenging year," as several were engaged in lengthy restructuring processes. That said, it noted that restructuring processes are coming to an end, and December’s performance was the “best of the year" for the carriers in the region.
Meanwhile, IATA said growth in Africa has been "dynamic for most of the year," driven by the strength of the Africa-Asia route.
