Decline in global air cargo demand amid Russia-Ukraine war, Omicron threat
New Delhi, May 4: The International Air Transport Association (IATA) reported a decline in global air cargo markets in March, due to Covid-19 variant Omicron's impact in Asia and the Russia-Ukraine war, which is creating a difficult operational background.
"The war in Ukraine led to a fall in cargo capacity used to serve Europe as several airlines based in Russia and Ukraine were key cargo players. Sanctions against Russia led to disruptions in manufacturing. And rising oil prices are having a negative economic impact, including raising costs for shipping," IATA informed.
The impact of Omicron in Asia, the Russia-Ukraine war and a challenging operating backdrop contributed to the drop. Global demand, measured in cargo tonne-kilometres (CTKs*), dropped 5.2 percent compared to March 2021 (-5.4 percent for international operations).
"Global demand, measured in cargo tonne-kilometres (CTKs), fell 5.2 percent compared to March 2021 (-5.4 per cent for international operations). Capacity was 1.2 percent above March 2021 ( 2.6 per cent for international operations). While this is in positive territory, it is a significant decline from the 11.2 per cent year-on-year increase in February. Asia and Europe experienced the largest falls in capacity," IATA said.
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In 2022, global commodity trade will continue to fall, with China's economy growing more slowly due to Covid-19-related lockdowns (among other factors); and the supply chain disruption will be exacerbated by the conflict in Ukraine. In February 2022, general consumer price inflation in the G7 countries was 6.3 percent, the highest level since 1982.
"Air cargo markets mirror global economic developments. In March, the trading environment took a turn for the worse. The combination of war in Ukraine and the spread of the Omicron variant in Asia have led to rising energy costs, exacerbated supply chain disruptions, and fed inflationary pressure. As a result, compared to a year ago, there are fewer goods being shipped--including by air," said Willie Walsh, the Director-General, IATA.
"Peace in Ukraine and a shift in China's Covid-19 policy would do much to ease the industry's headwinds. As neither appears likely in the short-term, we can expect growing challenges for air cargo just as passenger markets are accelerating their recovery," he further said.
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-PTC News
