The International Air Transport Association (IATA) said global air cargo markets in September showed that demand continued to be well above pre-Covid 19 levels although capacity constraints continue to persist.

In a statement, IATA said global demand, measured in cargo tonne-kilometers (CTKs), was up 9.1% compared to September 2019.

Capacity, however, remains constrained at 8.9% below pre-COVID-19 levels in September 2019.

It cited several factors impacting global air cargo demand which includes supply chain disruptions and the resulting delivery delays have led to long supplier delivery times; and that September manufacturing activity continued to expand at a global level but, there was contraction in emerging economies.

"The inventory-to-sales ratio remains low ahead of the peak year-end retail events such as Single's Day, Black Friday and Cyber Monday. This is positive for air cargo, however further capacity constraints put this at risk," IATA said.

Meanwhile, it noted that cost-competitiveness of air cargo relative to that of container shipping "remains favorable" with pre-crisis, the average price to move air cargo was 12.5 times more expensive than sea shipping.

It said in September 2021 it was only three times more expensive.

Call on government intervention

"Air cargo demand grew 9.1% in September compared to pre-COVID levels. There is a benefit from supply chain congestion as manufacturers turn to air transport for speed," said Willie Walsh, IATA's Director General.

"But severe capacity constraints continue to limit the ability of air cargo to absorb extra demand, If not addressed, bottlenecks in the supply chain will slow the economic recovery from COVID-19. Governments must act to relieve pressure on global supply chains and improve their overall resilience."

To relieve supply chain disruptions, IATA called on governments to ensure that air crew operations are not hindered by COVID-19 restrictions designed for air travelers; and for governments to implement the commitments governments made at the ICAO High Level Conference on COVID-19 to restore international connectivity — which it said will ramp up vital cargo capacity with belly space.

September Regional Performance

Per region, IATA said all regions except Latin America saw air cargo volumes increased for the July to September period, although capacity remains tight.

For Asia-Pacific airlines, international air cargo volumes increased 4.5% in September 2021 compared to the same month in 2019 which IATA said was a "slowdown in demand compared to the previous month's 5.1% expansion."

"Demand is being affected by slowing manufacturing activity in China. International capacity is significantly constrained in the region, down 18.2% vs. September 2019. Looking forward, the decision by some countries in the region to lift travel restrictions should provide a boost for capacity," it said.

North American carriers posted a 19.3% increase in international cargo volumes for the same period although IATA noted that new export orders and demand for faster shipping times are underpinning the North American performance.

European carriers also saw a 5.3% rise in international cargo volumes vs. the same period in 2019. IATA said manufacturing activity, orders and long supplier delivery times remain favorable to air cargo demand.

Middle Eastern carriers also saw a 17.6% rise in international cargo volumes in September versus the level seen in September 2019.

Latin American carriers, meanwhile, reported a decline of 17.1% in international cargo volumes, which IATA said was the "weakest performance" of all regions.

"This was also slightly worse than the previous month (a 14.5% fall). Capacity in September was down 20.9% on pre-crisis levels, an improvement from August, which was down 24.2% on the same month in 2019," it added.

For Africa, carriers saw international cargo volumes increase by 34.6% in September, the largest increase of all regions for the ninth consecutive month. International capacity for the region was also up 6.9% higher than pre-crisis levels, which IATA said is the only region in positive territory.