Demand for air cargo fell 27.7 percent in April compared with the same month a year earlier, marking the sharpest drop ever recorded, according to date released Monday by the International Air Transport Association (IATA). Nevertheless, a lack of belly cargo capacity on passenger aircraft due to the coronavirus pandemic-related cut in traffic resulted in insufficient capacity to meet world demand.
According to the IATA, global cargo capacity, measured in available cargo tonne kilometers (ACTKs), shrank by 42 percent in April compared with the previous year. However, the expanded use of freighter aircraft helped offset a 75 percent drop in belly capacity for international air cargo in April.
Cargo load factor (CLF) rose 11.5 percentage points in April, the largest increase since tracking began. The magnitude of the rise suggests demand for air cargo that airlines cannot meet due to the cessation of most passenger flights.
“There is a severe capacity crunch in air cargo,” said IATA director general Alexandre de Juniac. “The result is damaging global supply chains with longer shipping times and higher costs. Airlines are deploying as much capacity as possible, including special charter operations and the temporary use of passenger cabins for cargo. Governments need to continue to ensure that vital supply lines remain open and efficient. While many have responded with speed and clarity to facilitate the movement of cargo, government red-tape—particularly in Africa and Latin America—is preventing the industry from flexibly deploying aircraft to meet the demands of the pandemic and the global economy.”
Delays in getting operational permits issued, blockages at the border, and inadequate ground infrastructure to/from and within airport environments continue to hamper air cargo in countries in Africa and Latin America, said IATA. The association has urged governments to accelerate approvals for cargo operations, speed customs clearance for urgently needed medical supplies, and ensure adequate staff on the ground and land-based infrastructure to move cargo efficiently.
A 38.9 percent year-over-year decline in international demand among Latin American carriers meant the region registered the sharpest fall among all regions. Meanwhile, international capacity decreased by 55.5 percent. According to the IATA, airlines based in Latin America face a particularly acute challenge from the Covid-19 crisis because of strict containment measures and a lack of support from governments to keep cargo moving.