Cargo capacity improves, demand is worrisome
Global cargo tonne-kilometers (CTKs) increased by 1.5 per cent YoY in August, the first annual growth in 19 months since February 2022. An IATA statement stated industry CTKs were 1.3 per cent lower than their 2019 levels. Air cargo capacity, measured in available cargo tonne-kilometers (ACTKs), continued its double-digit growth. ACTKs were up 12.2 per cent YoY, driven by the sustained expansion of belly capacity in the summer season. Air cargo’s historic ties with industrial production and cross-border trade trended back to realignment. However, the sustained annual contraction of trade remains a worrying signal to air cargo demand. Inflation in the USA continued to increase for the second month in a row, after 13 months of decline. Although China’s CPI growth reverted to positive from the July level, the country recorded negative PPI in August for the 16th consecutive month. Airlines in the Asia Pacific (2%), North America (1.8%), Latin America (5.8%), and Middle East (1.3%) regions registered annual growth in their international CTKs in August, owing to the improved traffic in major trade lanes.