The International Air Transport Association (IATA) said air cargo demand grew for the 15th consecutive month in October and is shaping up to be a banner year.
Nonetheless, the market should look into 2025 with caution as the incoming administration of President-elect Donald Trump in the United States is already causing jitters in the supply chain over his earlier pronouncements of new tariffs against China, Canada and Mexico, among others.
IATA said that in October 2024, data showed that global air cargo markets were continuing to show strong annual growth in demand.
Total demand, measured in cargo tonne-kilometers (CTKs), rose by 9.8% compared to October 2023 levels (10.3% for international operations) for a 15th consecutive month of growth.
Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 5.9% compared to October 2023 (7.2% for international operations) — which was largely driven by an 8.5% increase in international belly capacity.
IATA noted that dedicated freighter capacity increased by 5.6%, the seventh consecutive month of growth, with volumes nearing 2021 peak levels.
"While 2024 is shaping up to be a banner year for air cargo, we must look to 2025 with some caution," said Willie Walsh, director general of IATA.
"The incoming Trump Administration's announced intention to impose significant tariffs on its top trading partners — Canada, China and Mexico — has the potential to upend global supply chains and undermine consumer confidence," he added.
Nonetheless, Walsh noted that the air cargo industry's proven adaptability to rapidly evolving geopolitical and economic situations is likely to be tested as the Trump agenda unfolds.
[Source: IATA]
All regions showed growth
For the period, IATA's report showed that all regions showed growth in air cargo volumes led by Latin American and Asia Pacific airlines.
Asia-Pacific airlines saw 13.4% year-on-year demand growth for air cargo in October, and capacity increased by 9.3% year-on-year.
North American carriers recorded a 9.5% demand growth compared to the same period in 2023, as capacity was also up by 5.8%.
European carriers saw a 7.6% increase in air freight demand in October, and capacity also grew by 3.9% year over year.
Middle Eastern carriers' growth was 4.5% in October compared to the same month in 2023, and capacity increased 0.8% year over year.
Meanwhile, Latin American carriers saw 18.5% year-on-year demand growth for air cargo in October, the strongest growth among the regions. Capacity in the region increased 5.8% year-on-year.
African airlines, on the other hand, recorded a 1.6% demand growth for air cargo in October, the slowest among regions. Capacity increased by 7.7% compared to the same period in 2023.
IATA said international routes experienced exceptional traffic levels for the fifth consecutive month, with a 10.3% year-on-year increase in October.
"Airlines are benefiting from rising e-commerce demand in the US and Europe amid ongoing capacity limits in ocean shipping," it added.
