Market News

Written by Sivowaku Abiodun

The global air cargo markets rose again in November 2024, with total demand, measured in cargo tonne-kilometres (CTK), rising by 8.2 per cent compared to November 2023 levels (9.5 per cent for international operations) for the 16th consecutive month of growth.

Data released by the International Air Transport Association (IATA) for November 2024, showed that capacity, measured in available cargo tonne-kilometres (ACTK), increased by 4.6 per cent compared to November 2023 (6.5 per cent for international operations).

“It was a good November for air cargo with 8.2 per cent demand growth nearly doubling the 4.6 percent growth in cargo capacity. Fuel costs tracked at 22 per cent below previous-year levels and tight market conditions supported yield growth at 7.8 per cent.

“All things considered we are looking to close out 2024 air cargo performance on a profitable note. While this strong performance is very likely to extend into 2025, there are some downside risks that must be carefully watched. These include inflation, geopolitical uncertainties and trade tensions,” said IATA’s director general, Willie Walsh.

Year-on-year, industrial production rose 2.1 per cent in October. Global goods trade grew for a seventh per tentative month, reporting one per cent increase.

The Purchasing Managers Index (PMI) for global manufacturing output was above the 50 mark for November, indicating growth. However, the PMI for new export orders remained below the 50 mark, suggesting ongoing uncertainty and weakness in global trade.

US headline inflation, based on the annual Consumer Price Index (CPI), rose by 0.1 percentage points to 2.7 per cent in November. In the same month, the inflation rate per cent EU increased by 0.2 percentage points to 2.5 per cent. China’s consumer inflation fell to 0.2 per cent in November, continuing concerns of an economic slowdown.

November Regional Performance 

African airlines saw a 0.7 per cent year-on-year decrease in demand for air cargo in November, the slowest among regions. Capacity increased by 0.4 per cent year-on-year. 

Asia-Pacific airlines saw 13.2 per cent year-on-year demand growth for air cargo in November, the strongest growth among the regions. Capacity increased by nine per cent year-on-year. 

North American carriers saw 6.9 percent year-on-year demand growth for air cargo in November. Capacicity increased by 2.2 per cent year-on-year. 

European carriers saw 5.6 per cent year-on-year demand growth for air cargo in November. Capacity increased 4.3 per cent year-on-year. 

Middle Eastern carriers saw 3.6 per cent year-on-year demand growth for air cargo in November. Capacity decreased by 0.60.6 per cent year-on-year. 

Latin American carriers saw 11.6 per cent year-on-year demand growth for air cargo in November. Capacity increased 6.4 per cent year-on-year. 

Trade Lane Growth: International routes experienced exceptional traffic levels for the 16th consecutive month with a nine per cent year-on-year increase in November. Airlines are benefiting from rising e-commerce demand in the US and Europe amid ongoing capacity limits in ocean shipping.