State of Logistics 2021: Air Cargo

Air cargo continues steady climb in volumes, rates.


Air Cargo continues to be the bright spot for aviation in terms of demand, but capacity remains tight, and shippers are paying higher rates.

Data collected by the International Air Transport Association (IATA) and air cargo data services firm CLIVE over the past year show an upward trajectory in demand for air cargo services, although it did dip 4% in May. IATA attributes this to heightened global industrial production and cross border trade.

“Supply chain disruptions and the resulting delivery delays have led to long supplier delivery times—the second-longest in the history of the manufacturing PMI,” states IATA. “This typically means manufacturers use air transport, which is quicker, to recover time lost during the production process.”

Further data collected by CLIVE for April 2021 indicates air cargo volumes up 78% compared to April 2020 and up 1% compared to April 2019. CLIVE analysts emphasize how high load factors continue to strain international air cargo particularly given that the traditional surge in summer capacity has so far failed to materialize.

Analysts at CLIVE state that while April 2021 volumes may be close to those of April 2019, overall capacity was down 18%. For May 2021, available capacity was down 21% compared to May 2019. “This shows the gap in airline capacity is widening again compared to pre-pandemic market conditions following the -18% figure in April and -14% for March,” according to the analyst report.

May 2021 data versus the same month of 2020, when COVID restrictions caused severe disruption to the global aviation market, show +41% growth in chargeable weight, a +42% rise in available capacity, and +1% point increase in dynamic loadfactor. The “dynamic loadfactor” measures how full an aircraft is by considering both freight volume and weight.

“Airfreight capacity is still scarce on many key trade lanes, so prices remain strong as economic activity picks up while passenger air capacity remains constrained due to restrictions on international travel,” says Gareth Sinclair of air cargo market intelligence firm TAC Index. “The Baltic Air Freight Indices [weekly transactional rates for general cargo as provided by freight forwarders] increased by 3% in May over April, but this is a slowdown on the 17% growth seen in April over March.”

According to TAC, pricing strength continues on routes between China and Hong Kong to the United States and Europe, and from Europe to the United States. The airfreight market, particularly China and Hong Kong to the United States, also continues to be strong.

Sinclair surmises that this is likely to continue for some time as demand in several markets continues to outstrip supply. The result is that e-commerce traffic continues to increase and economic activity is strengthening in many markets.

View the additional State of Logistics topic updates here.


Article Topics

Magazine Archive
Transportation
Air Freight
Air Cargo
Air Freight
CLIVE
IATA
State of Logistics
Transportation
   All topics

Air Freight News & Resources

DSV announces acquisitions of S&M Moving Systems West and Global Diversity Logistics
Freight market declines test brokers in the fourth quarter, reports TIA
Union Pacific announces a search for a new CEO, amid investor pressure
2023 Rate Outlook Webcast: Will shippers catch a break?
Q&A: Tom Schmitt, CEO, Forward Air
FedEx fiscal first quarter earnings reflect difficult market conditions
FedEx Express heralds FedEx International Connect Plus expansion in AMEA region
More Air Freight

Latest in Logistics

GXO heralds debut of GXO Connect in the UK
Yellow, Teamsters union butting heads a year before contract deadline
Industry stakeholders call on White House to aid in West Coast port labor talks
How to make sure your warehouse automation gives a high ROI
Gain Greater Visibility With ERP & TMS Integration
Q&A: Michael Farlekas, CEO, e2open
Three layers of forklift safety: Promoting operating best practices
More Logistics

Subscribe to Logistics Management Magazine

Subscribe today!
Not a subscriber? Sign up today!
Subscribe today. It's FREE.
Find out what the world's most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today.

March 2023 Logistics Management

March 14, 2023 · We speak with a number of logistics experts to capture their views on the overall impact that e-commerce is having on moving the nation’s freight. One thing is for certain: The current level and speed of churn has irrevocably altered the pattern so many had become accustomed to managing.

Latest Resources

How to make sure your warehouse automation gives a high ROI
Unlock Your Warehouse's True Potential with Automation - Learn the Essentials of Automating Your Warehouse for Maximum Return on Investment.
Gain Greater Visibility With ERP & TMS Integration
Three layers of forklift safety: Promoting operating best practices
More resources
 


Latest Resources

Warehouse/DC Automation & Technology: It’s “go time” for investment
Warehouse/DC Automation & Technology: It’s “go time” for investment
In our latest Special Digital Issue, Logistics Management has curated several feature stories that neatly encapsulate the rise of automated systems and...
Why accurate, real-time location data is a must for efficient operations
Why accurate, real-time location data is a must for efficient operations
Find out how next-generation workforce management apps use accurate, real-time location data to power successful operations in this webinar with Radar CEO...

Should you lease or buy your lift truck fleet?
Should you lease or buy your lift truck fleet?
Leasing critical equipment like lift trucks can offer flexibility, but some lease terms can be complex and costly if you’re not...
2023 State of the Third-Party Logistics (3PL) Industry Report
2023 State of the Third-Party Logistics (3PL) Industry Report
In this year’s Third-Party Logistics State of the Industry Report, you’ll learn about our top trends for the year and...
2023 Rate Outlook Webcast: Will shippers catch a break?
2023 Rate Outlook Webcast: Will shippers catch a break?
In this annual webcast, group editorial director Michael Levans hosts our panel of logistics and freight transportation analysts who share their insights...