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By Chinelo Obogo
The International Air Transport Association (IATA) released data for global air cargo markets showing African airlines’ saw cargo volumes increase by 12.4 per cent in January 2022 compared to January 2021. The region was the strongest performer as capacity was 13.0 per cent above January 2021 levels.
IATA however said that the industry generally experienced slower growth in January 2022 as supply chain disruptions, capacity constraints, as well as a deterioration in economic conditions for the sector dampened demand.
Global demand was up 2.7 per cent compared to January 2021 (3.2 per cent for international operations) but this was significantly lower than the 9.3 per cent growth seen in December 2021 (11.1 per cent for international operations).
Capacity was 11.4 per cent above January 2021 (10.8 per cent for international operations). While this is in positive territory, compared to pre-COVID-19 levels, capacity remains constrained, 8.9% below January 2019 levels.
IATA’s Director General, Willie Walsh, said, “Demand growth of 2.7 per cent in January was below expectation, following the 9.3 per cent recorded in December. This likely reflects a shift towards the more normal growth rate of 4.9 per cent expected for this year. Looking ahead, however, we can expect cargo markets to be impacted by the Russia-Ukraine conflict. Sanction-related shifts in manufacturing and economic activity, rising oil prices and geopolitical uncertainty are converging. Capacity is expected to come under greater pressure and rates are likely to rise. To what extent, however, it is still too early to predict.” Russia Ukraine conflict will have a negative impact on air cargo as airspace closures will stop direct connectivity to many markets connected to Russia. Overall, the impact on global markets is expected to be low as cargo carried to from within Russia accounted for just 0.6 per cent of the global cargo carried by air in 2021. Several specialised cargo carriers are registered in Russia and Ukraine, particularly those involved with heavy lift operations.
