Recovery of Air Cargo slower than anticipated in June

By TIN Media | Airlines Published 1 week ago on 29 July 2020
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KUALA LUMPUR:

The criteria for international aviation was increased in June, but at a slower rate than would be indicated by some of the conventional leading indicators, according to the International Air Transport Association  ( IATA).

The global demand calculated in tonne-km freight (CTKs), decreased by 17.6% by June (– 19.9% for foreign operations) relative to the previous year, according to the World Trade Organization for Airlines.

“That is a modest improvement from the 20.1% year-on-year drop recorded in May,” it said in a statement.

The study indicated that in June global volume measured in usable tons-kilometers of cargo (TTK) decreased by 34.1% (— 33.9% for foreign operations) compared to last year.

“This was on par with the 34.8 per cent year-on-year drop in May,” it said.

Because of the abolition of passenger services in the COVID 19 area, the abysmal capacities for international aviation freight decreased in June from the previous year by 70%.

“This was partially offset by a 32 per cent increase in capacity through expanded use of freighter aircraft,” it said.

The new portion of the Purchasing Managers Index (PMI) export orders, which increased by 11points from May, showed a significant monthly rise in global demand in June, since the series began in 1999.

“The PMI tracking global manufacturing output rebounded in June to its highest level since January,” it added.

Chief Executive Officer Alexandre de Juniac has confirmed that freight is by far better than passenger markets but it is incredibly difficult to do business.

"While economic activity is re-starting after major lockdown disruptions, there has not been a major boost in demand,” he said.

He said the rush to get personal protective equipment (PPE) to market has subsided as supply chains regularised, enabling shippers to use cheaper sea and rail options.

“And the capacity crunch continues because passenger operations are recovering very slowly,” he added.

 


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