GLOBAL air cargo markets have already been impacted by the effects of the Russia-Ukraine war, according to the International Air Transport Association (IATA), though it is too early to gauge the full effect of the conflict.
Consequences seen so far will 'further reduce available capacity and increase already elevated air cargo rates', IATA said, adding that it is too soon to predict the extent of those developments, reports London's Flight Global.
IATA made that assessment as it released its latest cargo demand data, which showed global growth of 2.7 per cent in January this year - a 'soft patch' that represents the lowest rise in cargo tonne kilometres (CTKs) since December 2020.
IATA cites factors including the impact of the Omicron variant of Covid-19 on passenger and cargo-only networks in January, which notably reduced bellyhold cargo capacity as services were cancelled, plus weaker economic drivers.
IATA also suggests that pre-Ukraine conflict, the air cargo market was likely shifting 'towards a more normal growth rate of 4.9 per cent expected for this year', following much higher increases throughout 2021.
War in eastern Europe has introduced several uncertainties into that market and was already having a negative impact from late February, the airline body states.
Rising fuel costs in particular mean more flights are likely to become 'unprofitable for airlines and air cargo more expensive for businesses'.
At the same time, airspace restrictions mean cargo services to and from Russia are significantly reduced, although the country's market accounted for only 0.6 per cent of global air freight carried in 2021, IATA notes.
Nevertheless, 'several key operators' in the sector are based in Russia and Ukraine, it states.
Flows between Europe and Asia are also being affected by Russian airspace restrictions, IATA continues, although alternative routings may be possible.
'The Europe-Asia market weighed 20.6 per cent of all international CTKs in the past 12 months,' it says. 'Part of the traffic flying over Russia is likely to be made up on other routes, notably via the Middle East.'
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Consequences seen so far will 'further reduce available capacity and increase already elevated air cargo rates', IATA said, adding that it is too soon to predict the extent of those developments, reports London's Flight Global.
IATA made that assessment as it released its latest cargo demand data, which showed global growth of 2.7 per cent in January this year - a 'soft patch' that represents the lowest rise in cargo tonne kilometres (CTKs) since December 2020.
IATA cites factors including the impact of the Omicron variant of Covid-19 on passenger and cargo-only networks in January, which notably reduced bellyhold cargo capacity as services were cancelled, plus weaker economic drivers.
IATA also suggests that pre-Ukraine conflict, the air cargo market was likely shifting 'towards a more normal growth rate of 4.9 per cent expected for this year', following much higher increases throughout 2021.
War in eastern Europe has introduced several uncertainties into that market and was already having a negative impact from late February, the airline body states.
Rising fuel costs in particular mean more flights are likely to become 'unprofitable for airlines and air cargo more expensive for businesses'.
At the same time, airspace restrictions mean cargo services to and from Russia are significantly reduced, although the country's market accounted for only 0.6 per cent of global air freight carried in 2021, IATA notes.
Nevertheless, 'several key operators' in the sector are based in Russia and Ukraine, it states.
Flows between Europe and Asia are also being affected by Russian airspace restrictions, IATA continues, although alternative routings may be possible.
'The Europe-Asia market weighed 20.6 per cent of all international CTKs in the past 12 months,' it says. 'Part of the traffic flying over Russia is likely to be made up on other routes, notably via the Middle East.'
SeaNews Turkey
