Easley Answers – International Air Freight Volumes
By the month of May, the world seemed to have somewhat adjusted to the “new normal.” Though things were far from the way they used to be, people and businesses adapted to the situation. Restaurants emphasized curbside pickup, schools wrapped up remote classes, and the workforce became proficient with Zoom. But, where did that leave the air cargo market?
May marked the third month in a row with a double-digit decline when compared to the same month in 2019. But, the 20% year-on-year drop in May was better than the 25.6% dip seen in April. Additionally, we saw manufacturing stabilize across the world in May, which lent significantly to this slight recovery. China even experienced its third consecutive month of increasing output.
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According to the IATA Air Cargo Market Analysis, “…the pace of the fall [in May] has slowed significantly, as many economies have started to come out of lockdowns.” Though the market was still experiencing a contraction, it was not as bad as previous months. Cargo capacity also increased in May when compared to April. As airlines gradually began to offer more passenger flights, belly capacity grew.
Concerning the global supply chain, delivery timelines continued to be a problem. The coronavirus outbreak brought various “inefficiencies and delays” to logistics networks, which remained prevalent throughout May. Limited cargo capacity combined with extended delivery times resulted in a supply chain nightmare.
Though the overall numbers still indicated a contraction for the month, some positives should be noted. First, the industry experienced a steady flow of manufacturing. Then, there was a decent uptick in cargo capacity due to the resumption of passenger flights. Finally, the pace of market contraction slowed down, indicating that the climb to recovery is soon to come.
Read the full report from IATA here.