AIRLINE association iata says air cargo growth slowed in November as supply chain issues affected demand, according to the group's latest figures, which show that air cargo demand in cargo tonne km (CTK) terms during the month increased by 3.7 per cent compared with 2019 levels.
IATA said that this growth percentage was 'significantly lower' than the 8.2 per cent registered in October and the 6.7 per cent increase over the first 11 months of the year.
'Supply chain disruptions and capacity constraints impacted demand, despite economic conditions remaining favorable for the sector,' the association said, reports London's Air Cargo News.
IATA highlighted labour shortages due to employees being in quarantine, insufficient storage space at some airports and processing backlogs exacerbated by the year-end rush.
Meanwhile, demand indicators remain positive, with retail sales in the US and China strong, trade and industrial production figures continuing to beat 2019 levels and inventory levels low.
IATA added that a surge in Covid cases was driving personal protective equipment (PPE) demand.
Cargo load factors for the month stood at 55.9 per cent - a 6.1 percentage point increase on 2019 - as capacity was down by 7.6 per cent on two years earlier.
IATA director general Willie Walsh said: 'Air cargo growth was halved in November compared to October because of supply chain disruptions.
'All economic indicators pointed towards continued strong demand, but the pressures of labour shortages and constraints across the logistics system unexpectedly resulted in lost growth opportunities.
'Manufacturers, for example, were unable to get vital goods to where they were needed, including PPE.
'Governments must act quickly to relieve pressure on global supply chains before it permanently dents the shape of the economic recovery from Covid-19.'
Looking at regional performance, Asia Pacific airlines saw cargo increase by 1.1 per cent in November compared with two years earlier.
North American carriers' demand was up 13.3 per cent, although this was down on 20.3 per cent in October, as congestion at hubs affected growth.
European carriers registered a 0.3 per cent increase in demand due to supply chain congestion and localised capacity constraints.
Middle East-based airlines saw cargo demand increase by 3.4 per cent, although this was also a 'significant drop' on previous months performance.
In Latin America, carriers saw demand drop by 12.8 per cent on 2019, also a deterioration compared with October. Finally, African airlines noted a 0.1 per cent decline, another drop on October.
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IATA said that this growth percentage was 'significantly lower' than the 8.2 per cent registered in October and the 6.7 per cent increase over the first 11 months of the year.
'Supply chain disruptions and capacity constraints impacted demand, despite economic conditions remaining favorable for the sector,' the association said, reports London's Air Cargo News.
IATA highlighted labour shortages due to employees being in quarantine, insufficient storage space at some airports and processing backlogs exacerbated by the year-end rush.
Meanwhile, demand indicators remain positive, with retail sales in the US and China strong, trade and industrial production figures continuing to beat 2019 levels and inventory levels low.
IATA added that a surge in Covid cases was driving personal protective equipment (PPE) demand.
Cargo load factors for the month stood at 55.9 per cent - a 6.1 percentage point increase on 2019 - as capacity was down by 7.6 per cent on two years earlier.
IATA director general Willie Walsh said: 'Air cargo growth was halved in November compared to October because of supply chain disruptions.
'All economic indicators pointed towards continued strong demand, but the pressures of labour shortages and constraints across the logistics system unexpectedly resulted in lost growth opportunities.
'Manufacturers, for example, were unable to get vital goods to where they were needed, including PPE.
'Governments must act quickly to relieve pressure on global supply chains before it permanently dents the shape of the economic recovery from Covid-19.'
Looking at regional performance, Asia Pacific airlines saw cargo increase by 1.1 per cent in November compared with two years earlier.
North American carriers' demand was up 13.3 per cent, although this was down on 20.3 per cent in October, as congestion at hubs affected growth.
European carriers registered a 0.3 per cent increase in demand due to supply chain congestion and localised capacity constraints.
Middle East-based airlines saw cargo demand increase by 3.4 per cent, although this was also a 'significant drop' on previous months performance.
In Latin America, carriers saw demand drop by 12.8 per cent on 2019, also a deterioration compared with October. Finally, African airlines noted a 0.1 per cent decline, another drop on October.
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