Travel Industry News at TravelNewsAsia.com since 1997. Interviews, podcasts, videos, pictures and more
Wed, 30 September 2020

Insufficient Capacity Dampens Air Cargo in August

IATA's August 2020 data for global air freight markets shows that improvement remains slow amid insufficient capacity.

Demand moved slightly in a positive direction month-on-month; however, levels remain depressed compared to 2019. Improvement continues at a slower pace than some of the traditional leading indicators would suggest. This is due to the capacity constraint from the loss of available belly cargo space as passenger aircraft remain parked.

Global demand, measured in cargo tonne-kilometers (CTK), was 12.6% below previous-year levels in August (-14% for international operations). That is a modest improvement from the 14.4% year-on-year drop recorded in July. Seasonally-adjusted demand grew by 1.1% month-on-month in August.

CargoLogicAir Boeing 747-400ERF reg: G-CLBA. Picture by Steven Howard of TravelNewsAsia.com Click to enlarge.

Global capacity, measured in available cargo tonne-kilometers (ACTK), shrank by 29.4% in August (-31.6% for international operations) compared to the previous year. This is basically unchanged from the 31.8% year-on-year drop in July.

Belly capacity for international air cargo was 67% below the levels of August 2019 owing to the withdrawal of passenger services amid the COVID19 pandemic. This was partially offset by a 28.1% increase in dedicated freighter capacity. Daily widebody freighter utilization is close to 11 hours per day, the highest levels since these figures have been tracked in 2012.

Economic activity continued to recover in August reflected, among other things, in the performance of the Purchasing Managers’ Index (PMI) indicator of economic health in the manufacturing sector:

The new export orders component of the manufacturing PMI rose by 5.1% year-on-year, its best performance since late 2017.

The PMI tracking global manufacturing output increased month-on-month and remained above the 50-mark, indicating growth.

“Air cargo demand improved by 1.8 percentage points in August compared to July. That’s still down 12.6% on previous year levels and well below the 5.1% improvement in the manufacturing PMI,” said Alexandre de Juniac, IATA's Director General and CEO. “Improvement is being stalled by capacity constraints as large parts of the passenger fleet, which normally carries 50% of all cargo, remain grounded. The peak season for air cargo will start in the coming weeks, but with severe capacity constraints shippers may look to alternatives such as ocean and rail to keep the global economy moving.”

Asia-Pacific airlines saw demand for international air cargo fall 18.3% in August 2020 compared to the same month in 2019. After a robust initial recovery in May, month-on-month growth in seasonally-adjusted demand declined for the second consecutive month. International capacity is particularly constrained in the region, down 35%.

North American carriers reported that demand fell 4% compared to the previous year—the third consecutive month with a single-digit decline. This steady performance is due in part to strong domestic and transpacific demand on the Asia-North America route, reflecting e-commerce demand for products manufactured in Asia. International capacity decreased 28.2%.

European carriers reported a decrease in demand of 19.3% compared to the same month last year. Improvements have been slight but consistent since April’s performance of -33%. Demand on most key trade lanes to / from the region remained weak. The large Europe–Asia market was down 18.6% year-on-year in August. International capacity decreased 33.5%.

Middle Eastern carriers reported a decline of 6.8% in year-on-year international cargo volumes in August, a significant improvement from the 15.1% fall in July. Regional airlines have aggressively added capacity in the last few months with international capacity improving from a 42% fall at the trough in April, to a decline of 24.2% in August, the most resilient of all regions. Demand on trade routes to and from Asia and North America remained strong with demand down 3.3% and up 2.3% respectively year-on-year.

Latin American carriers reported demand steady at -26.1% compared to the previous year, ending three consecutive months of deteriorating demand. Demand on trade routes between Latin America (particularly Central America) and North America have compensated for weakness on other routes. Capacity remains significantly constrained in the region with international capacity decreasing 38.5% in August, the largest fall of any region.

African airlines saw demand increase by 1% in August. This was the fourth consecutive month in which the region posted the strongest increase in international demand and only instance of year-on-year growth among all regions in international volumes. Investment flows along the Africa-Asia route continue to drive the regional outcomes.

See latest Travel News, Video Interviews, Podcasts and other news regarding: COVID19, IATA, Cargo, Freight.

Headlines: AirAsia Cambodia Prepares for Take Off  Alex Schellenberger Joins Mandarin Oriental as Senior Vice President Brand  Ethiopian Airlines Opens E-Commerce Logistics Facility at Bole Addis Ababa Airport  Routes Americas 2024 Taking Place in Bogota, Colombia  Air Botswana Appoints APG as GSA in 16 Markets  Korean Air to Resume More Flights; Increase Services to Select Destinations  WestJet Appoints APG as Representative in South Korea; Airline to Launch YYC-ICN Flights in May  Courtyard by Marriott Hotel Opens in Fukui, Japan  Rolls-Royce to Expand Engine Build and Services Capacity in UK and Germany  United Airlines to Launch Los Angeles - Shanghai Flights; Increase LAX - HKG Service  Nine Exclusive HD Video Interviews from Routes Asia 2024 in Langkawi, Malaysia  AirAsia X Launches Direct Flights Between Kuala Lumpur and Almaty, Kazakhstan  Singapore Airlines Revamps Premium Economy Class with New Menu and Amenity Kit  Amadeus Completes Acquisition of Voxel  Minor to Rebrand NH Museum Quarter Hotel in Amsterdam, Netherlands  U-Tapao Airport (UTP) in Rayong / Pattaya, Thailand - HD Video Interview with Ampika Chadawong  IndiGo to Launch Flights Between Mumbai and Colombo, Sri Lanka  Perth Airport (PER) in Western Australia - HD Video Interview with Stephanie Juszkiewicz  China Airlines to Launch Flights Between Taipei and Seattle, USA  TUMI Launches Capsule Collection in Partnership with NEOM McLaren Extreme E Team  AirAsia Malaysia to Resume Flights Between Kuala Lumpur and Pattaya, Thailand  Thai Airways to Launch Flights from Bangkok to Colombo, Kochi and Perth  Munich Airport (MUC) in Bavaria, Germany - HD Video Interview with Michael Haeffner  Japan Tourism, World Expo 2025 and Japan Expo 2025 - HD Video Interview with Akira Watabe of JNTO  BBN Airlines Indonesia Receives Additional AOC from DGCA  Vietnam Airlines to Launch Flights from HAN and SGN to Munich Airport in Bavaria, Germany  Sabre Launches Booking Solution for New and Independent Travel Consultants  AirAsia Malaysia Launches A321neo Flights Between Kuala Lumpur and Perth, Australia  Saudi Arabia's Air Connectivity Program - HD Video Interview with Rashed Alshammari, Vice President Commercial  Lui Chong Chee to Succeed Bob Tan as Chairman of the Boards of CapitaLand Ascott Trust  Sabah Tourism Board - HD Video Interview with Julinus Jeffery Jimit, Chief Executive Officer  Berlin Airport (BER) - HD Video Interview with Simon Miller, Senior Manager Market Intelligence  IndiGo to Launch Flights Between Chandigarh and Dharamshala, India  Skyco Partners Airbus; Orders Six H175 Helicopters  Jumeirah Appoints Michael Grieve as Chief Brand Officer  Cam Ranh Airport (CXR) in Nha Trang, Vietnam - HD Video Interview with Le Thi Hong Minh  Mercure Langkawi Pantai Cenang - HD Video Interview with Hotel GM, Jasmine Keh  Courtyard by Marriott Phnom Penh Appoints Lenen Mar Porras as ADOSM  United Confirms Flights to Cebu, Philippines as Airline Expands Network  Jumeirah Soft Opens First Hotel in Saudi Arabia  IHG Signs Two Luxury Hotels in KAFD Riyadh, Saudi Arabia  Qatar Airways' NDC Content Now Available on Travelport+  Estelle Vassallo Moves to Italy as GM of Anantara Convento di Amalfi Grand Hotel  Aviation: International RPK Up 20.8% in January 2024  Amora Completes Refurbishment and Rebranding of Hotel in Brisbane, Australia  Scoot Unveils Embraer E190-E2 Routes  IndiGo to Launch Flights from Jagdalpur to Hyderabad and Raipur  Jazeera Airways Appoints Barathan Pasupathi as CEO  Marriott Signs Le Meridien Hotel in Zanzibar  IATA Reports Air Cargo Data for January 2024  BFS Receives GDP Certification for Dedicated Pharma Handling Facility at BKK  Solomon Islands Welcomed 26,036 Visitors in 2023; Positive Outlook for 2024  Vietjet Signs MOU with Airbus for 20 A330-900 Aircraft  Hong Kong Airport Reports January 2024 Passenger and Cargo Numbers  Malaysia Aviation Group Becomes Official Airline Partner of MATTA Fair 2024  AirAsia Malaysia Launches Flights Between Kota Kinabalu and Shanghai, China  Taiwan's Starlux Airlines Orders Five Airbus A350 Freighters and Three A330neos  United Airlines to Resume Flights to Tel Aviv, Israel  Hahnair Appoints Stephen Chung as Regional Vice President Asia Pacific  Korean Air Cargo Expands Partnership with Vienna Airport  IndiGo to Launch Daily Flights Between Bengaluru and Bali, Indonesia  Thai Airways Confirms Boeing 787-9 Order  SkyScape Becomes Eve Air Mobility's First Urban ATM Customer in Japan  Royal Brunei Airlines Orders Four Boeing 787-9 Aircraft  TransNusa Airlines Rebranding as a Premium Service Carrier  Moxy Hotel Opens in Bangkok, Thailand  Peninsula Bangkok Appoints Masahisa Oba as Managing Director  Silk Avia Takes Delivery of First New ATR 72-600 Turboprop Aircraft in Central Asia  Korean Air to Enhance Retailing Strategy with Accelya's FLX Platform  Rohit Pandey Returns to Minor as GM of the Anantara Jaipur Hotel  Marriott Soft Opens First Moxy Hotel in Malaysia  AirAsia X to Launch Flights Between Kuala Lumpur and Almaty, Kazakhstan on 14 March  Malaysia Airlines Opens Ticketing Outlet at Paradigm Mall in Petaling Jaya  Marriott Expands Apartments with Properties Signed in Italy, USA and Saudi Arabia  Stockholders of Hawaiian Holdings Vote to Adopt Merger Agreement with Alaska Airlines  Thailand Travel Mart Plus (TTM+) 2024 Opens Online Registration for Buyers and Sellers  Lore Group's Five Design-Led Hotels Join Global Hotel Alliance  Hilton Partners Small Luxury Hotels of the World  British Airways Using E-Logs Platform to Predict and Enhance Aircraft Maintenance Issues  Surf Air Mobility Secures Early Delivery Positions for 90 Electra eSTOL Aircraft  Nine Exclusive Video Interviews with VIPs at ASEAN Tourism Forum 2024 in Vientiane, Laos  Thai Airways to Unveil Details of Boeing Aircraft Order at Singapore Air Show 2024  Hong Kong Reports Provisional Visitor Arrival Numbers for January 2024  Accor Hotels in New Zealand to Become Gold Standard Sustainable Tourism Businesses  American Express Opens World's Largest Centurion Lounge at ATL Airport in USA  Minor Hotels Reports Record Full Year Figures  Korean Air's Acquisition of Asiana Gets Conditional Clearance from European Commission  CapitaLand Establishes CLARA Fund II; Acquires Two lyf-Branded Properties as Seed Assets  ATR Receives B-Score from CDP Climate Change  Dassault to Showcase Falcon 6X and Falcon 2000LXS at the Singapore Air Show 2024  IHG's Expanding Hotel Portfolio in Vientiane - Interview with Murali Viswanathan, CGM  Settha Palace Hotel in Vientiane, Laos - Interview with Hala Krimi, General Manager  Vietjet Launches Flights Between Saigon and Chengdu, China  Inthira Vang Vieng Hotel in Laos - Interview with Charles-David Hay, General Manager  IHG Hotels at Dubai Festival City Appoints Pranav Vohra as Cluster Commercial Director  S Vang Vieng Boutique Hotel in Laos - Interview with Sengnikone Bouphaphanh  Full Moon Island Resort in Kaoh Sdach, Cambodia - Interview with Indra Khanitha Lay Prohas  Jetstar Launches Flights from Brisbane to Osaka and Seoul  IHG to Expand Six Senses Brand to Kyoto, Japan  DiscoverLaos - HD Video Interview with Southisack Sayasavanh, Tours Director  Cosi Vientiane Nam Phu Hotel - Interview with Pasin Nopsuwan, General Manager  Hyatt Expands JdV Brand of Hotels to Goa, India  Thailand to See Increase in Chinese New Year Tourism Spend  Lao Airlines - Exclusive Video Interview with Chanthanon Khampheng at ATF 2024  Dansavanh Nam Ngum Resort in Laos - Interview with Michelle Wang, Travel Director  Marriott Hotel Opens on Gurney Drive in Penang, Malaysia  Emirates to Increase Capacity on Flights to Osaka, Japan  Michelle Lee Joins Pullman Bangkok Hotel G as General Manager  Rosewood Makes Changes to Senior Management Team  Smiths Detection to Upgrade Security at Fukuoka Airport in Japan  Standard to Open Residences in Hua Hin and Phuket, Thailand; Video Interview with Amar Lalvani  AirAsia Indonesia Launches Flights Between Jakarta and Kota Kinabalu, Malaysia  Philippine Airlines to Deploy Amadeus Traveler DNA  Mantra Club Croc Airlie Beach Completes A$8 Million Refurbishment of All 160 Guestrooms  Vietjet Wet Leases Two Aircraft to Meet Surge in Lunar New Year Travel Demand  Singapore Cruise Centre to Upgrade Tanah Merah Ferry Terminal  IHG Signs New-Build 150-Key Holiday Inn Hotel in Guwahati, India  Thai AirAsia Launches Flights from Bangkok (DMK) to Shanghai and Kaohsiung  TFE Signs New-Build Apartment Hotel in Brisbane, Australia  Ritz-Carlton Hotel Opens in Las Colinas Area of Dallas, USA  8 NTO Press Conferences from the ASEAN Tourism Forum 2024 in Vientiane, Laos  13 Exclusive HD Video Interviews from World Travel Market 2023 in London, England  5 Exclusive HD Video Interviews from APG World Connect 2023 in Monaco, France  15 Exclusive HD Video Interviews from Routes World 2023 in Istanbul, Türkiye  Electric Airport Taxis at Almaty Airport in Kazakhstan - Video Interview with Co-Founder  Pictures from Miss International Queen 2023 Transgender Beauty Pageant in Pattaya, Thailand  Exclusive Video Interviews with 17 Miss International Queen 2023 Contestants  Living With One Eye - Six Years On by Steven Howard  HD Videos and Interviews  Podcasts from HD Video Interviews  RSS Feed - Travel Industry News  Ticker - Travel Industry News  Travel Industry News Archives  Travel Trade Shows  High-Res Picture Galleries  Travel News Asia - Latest Travel Industry News 

Subscribe to our Travel Industry News RSS Feed Travel Industry News RSS Feed from TravelNewsAsia.com. To do that in Outlook, right-click the RSS Feeds folder, select Add a New RSS Feed, enter the URL of our RSS Feed which is: https://www.travelnewsasia.com/travelnews.xml and click Add. The feed can also be used to add the headlines to your website or channel via a customisable applet. Have questions? Please read our Travel News FAQ. Thank you.

     
Advertising
Advertising
Copyright © 1997-2024 TravelNewsAsia.com