Category: news

Miami – The International Air Transport Association (IATA) is expanding the distribution network for its IATA CO2 Connect emissions calculations with Thrust Carbon, a sustainability intelligence platform provider for the travel industry. The agreement was concluded during IATA’s World Sustainability Symposium and will commence in October 2024.

“The corporate travel sector needs accurate and comparable CO2 emissions calculations for its Environmental, Social and Governance (ESG) monitoring and reporting. By working with Thrust Carbon, we will respond to this important need with calculations based on actual operational data provided by a growing community of airlines,” said Frederic Leger, IATA’s Senior Vice President Commercial Products and Services.

IATA CO2 Connect emissions calculations are based on a globally accepted standardized methodology that uses airline operational (fuel burn) data. The calculations will be then provided to Thrust Carbon, who will process these according to their individual clients’ needs. Their client base covers mainly the corporate travel sector who will be incorporating these calculations into the flight selection process, as well as use them for ESG monitoring and reporting.

“As aviation’s main trade association, IATA has a long tradition in setting industry standards, and we are thrilled with the initiative they are taking towards achieving greater transparency and sustainability. As a result of our collaboration, our corporate customers can now have easier and wider access to the CO2 Connect methodology, including their data flowing in and out of every leading travel management company and expense platform. This enables more consistency for those customers, and the ability to accurately plan carrier and route changes to help meet reduction goals,” said Kit Aspen, Founder of Thrust Carbon.

4 September 2024          No. 40

Geneva – The International Air Transport Association (IATA) announced that the theme for the 2024 World Safety and Operations Conference (WSOC) is “Embracing Innovation and Technology for Safe and Efficient Operations.” WSOC will take place from 1-3 October 2024 in Marrakech, Morocco, hosted by Royal Air Maroc.

This year’s event takes place against a backdrop of growing operational challenges, regional conflicts, cyber security threats, and extreme weather events, among others.

“Airlines face common challenges with an operating environment that is growing more complex. At the same time, technological advances, including AI, are offering ever greater potential in support of safe and efficient operations. WSOC 2024 is the forum for industry leaders and experts to share knowledge and experience to make the industry even more resilient and robust in the face of emerging challenges,” said Willie Walsh, IATA’s Director General.

“Safety is aviation’s highest priority and the cornerstone of every airline’s operation. For Royal Air Maroc, hosting WSOC is an opportunity to contribute to strengthening the industry’s performance while redoubling our own efforts. This is in particularly sharp focus at Royal Air Maroc as we embark on a major expansion to become a 200-aircraft airline by 2037. This growth will bring economic and social benefits across Morocco and Africa and contribute to the region’s preparations for the 2030 FIFA Football World Cup,” said Abdelhamid ADDOU, Chairman of the Board and CEO of Royal Air Maroc, who will give a keynote speech at the event and participate in the opening plenary panel.

Speakers & Sessions

Willie Walsh, and Nick Careen, IATA’s Senior Vice President Operations, Safety and Security will be speaking at the event along with:

• Mesfin Tasew Bekele, CEO, Ethiopian Airlines
• Marc Parent, CEO, CAE
• Michele Merkle, Director, ICAO Air Navigation Bureau
• Yannick Malinge, Senior Vice President, Head of Aviation Safety, Airbus
• Lacey Pittman, Vice President, Safety Management System, The Boeing Company
• Jennifer Homendy, NTSB Chair

 

• Elmarie Marais, Chief Executive Officer, GoCrisis

Four session tracks will address Safety, Cabin Operations, Flight Operations and Crisis Management.

Topics to be covered include:

• Risk-Based IATA Operational Safety Audit (IOSA)
• Safety Leadership and the IATA Safety Leadership Charter
• Runway Safety
• AI to improve use of data and resilience
• Accident Investigations
• Cabin Safety
• Passenger Safety Communications
• Digitalization and Aircraft Maintenance
• Crisis Management and Family Assistance Planning
• Geopolitical Risks: Cybersecurity Impact
• Regional aircraft operations

Workshops

The WSOC program will be complemented by a series of workshops, including:

• ATM Performance Workshop focusing on enhancing operational efficiency in Air Traffic Management (ATM) as a key contributor to achieving net zero carbon emissions by 2050, offering short-term efficiency improvements.
• How Just Should Your ‘Just Culture’ Be? workshop examining the true value of a Just Culture beyond regulatory compliance, focusing on its role in generating valuable data for risk management, reducing losses, and fostering a motivated workforce.
• The Power of Connecting the Dots across Airline Safety and Operations – Agility, Efficiency, and Peak Performance workshop will emphasize the significant value of integrating operations and safety to enhance overall performance and safety outcomes.
• Turbulence Aware Workshop will explore how IATA’s Turbulence Aware program is revolutionizing airline turbulence management and fuel efficiency by utilizing real-time, aircraft-generated EDR data to accurately display the location and intensity of turbulence.

 

3 September 2024

Singapore– The International Air Transport Association (IATA) expressed disappointment with the New Zealand Government’s decision to increase the International Visitor Conservation and Tourism Levy (IVL).

“It has been a double whammy for the New Zealand travel and tourism sector, starting with New Zealand Immigration announcing steep increases in visa fees, and now the increase in the IVL. These changes make travel to New Zealand more expensive and less attractive and could further delay the recovery in visitor numbers to beyond 2026,” said Dr. Xie Xingquan, IATA’s Regional Vice President for North Asia and Asia-Pacific (ad interim).

The recovery of the New Zealand aviation market currently lags behind major markets such as Australia, Canada, France, Spain, the UK, and the US. These markets have either recovered to pre-pandemic passenger levels or will achieve full recovery in 2024.

“The travel and tourism sector is an important contributor to the New Zealand economy. The government’s analysis indicated that more than three times of economic activity will be removed from the country for every dollar generated from additional IVL revenue. Instead of stifling its development, the government should be looking at ways to improve the country’s competitiveness as a destination compared to other markets,” said Dr. Xie. Thailand, for example, scrapped plans for a tourism tax on air travelers in June to encourage tourist spending in other areas.

During the public consultation process for the IVL, IATA had provided a submission urging that the IVL not be increased. “Unfortunately, the government announced the increased levy and its application in the 2024 budget while the consultation process was still ongoing, casting doubt on the process’ effectiveness,” said Dr. Xie.

Dr. Xie also noted that the government did not indicate how the funds collected by the IVL will be allocated. “I urge the government to consider allocating the funds collected to projects that support the decarbonization of the aviation sector.”

Geneva – The International Air Transport Association’s (IATA) second World Sustainability Symposium (WSS) will focus on actions needed to achieve the airline industry’s commitment to net-zero CO2 emissions by 2050. The event will take place in Miami, USA on 24-25 September 2024, hosted by American Airlines.

“Sustainability is an existential challenge for humanity as it is for our airline industry. Achieving net-zero CO2 emissions by 2050 is a big and complex task. But working together with the broader aviation industry, and with the support of governments, we will get there. WSS is a unique opportunity to bring all stakeholders together to learn, align and take the critical actions needed to galvanize our determination and accelerate progress,” said Willie Walsh, IATA’s Director General.

Key elements to help achieve net-zero CO2 emissions by 2050 being addressed at the WSS include:

• Decarbonization: Focusing on aviation’s transition to net-zero CO2 emissions, including how to develop, scale, and deliver the solutions necessary to decarbonize aviation over the 25 years to 2050. Discussions will address how to build the markets for Sustainable Aviation Fuel (SAF), carbon removals, and other nascent technologies, and the challenges involved in financing such projects.
• Innovation and Technology: Exploring new aircraft technologies and operational innovations with a focus on the practical aspects of implementing new technologies rapidly to advance the industry’s net-zero CO2 emissions goal.
• Policy and Regulation: Examining the global policy landscape aimed at achieving net-zero CO2 emissions, particularly related to SAF, and the complexities of aligning global regulations and harmonizing SAF policies to scale up production and deployment.
• Finance and Transparency: Looking at investment challenges; what are the difficulties and opportunities in financing renewable energy projects and SAF production, and how to make the investment case more attractive to stakeholders. The focus will be on strategies for attracting capital, transferring risk, and on what innovation is needed to finance the industry’s transition to net zero. Transparency will also be addressed as it is an essential part of the investment challenge in terms of fostering informed and science-based decision-making among investors, airlines, and other stakeholders.

“The WSS aims to unite decision makers across the public and private sectors, and across all areas of government, with the objective of decarbonizing air transportation. Aviation’s energy transition needs support beyond transportation ministries as it touches upon nearly all areas of the global, regional, and local economies and societies. Radical collaboration is needed to engage technology, policy, and finance and unite with a single-minded purpose to reach net-zero CO2 emissions by 2050. The mission is urgent, as a multitude of new markets need to reach maturity in the short 25 years to 2050. The WSS is the agenda-setting event that can accelerate progress as we tackle this enormous challenge,” said Marie Owens Thomsen, IATA’s Senior Vice President Sustainability and Chief Economist.

About WSS

The WSS is hosted by American Airlines with expected participation by more than 500 professionals from aviation, sustainability, technology, agriculture, trade, development, and finance as well as policy makers and other stakeholders. It is the second time that IATA is organizing the WSS, which has already become a flagship IATA event.

Strong Air Cargo Demand Growth Extends into July

Geneva – The International Air Transport Association (IATA) released data for July 2024 global air cargo markets showing continuing strong annual growth in demand.

• Total demand, measured in cargo tonne-kilometers (CTKs*), rose by 13.6% compared to July 2023 levels (14.3% for international operations). This is the eighth consecutive month of double-digit year-on-year growth, with overall levels reaching heights not seen since the record peaks of 2021.
• Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 8.3% compared to July 2023 (10.1% for international operations). This was largely related to the growth in international belly capacity, which rose 12.8% on the strength of passenger markets and balancing the 6.9% growth of international freighter capacity. It should be noted that the increase in belly capacity is the lowest in 40 months whereas the growth in freighter capacity is the highest since an exceptional jump was recorded in January 2024.

“Air cargo demand hit record highs year-to-date in July with strong growth across all regions. The air cargo business continues to benefit from growth in global trade, booming e-commerce and capacity constraints on maritime shipping. With the peak season still to come, it is shaping to be a very strong year for air cargo. And airlines have proven adept at navigating political and economic uncertainties to flexibly meet emerging demand trends,” said Willie Walsh, IATA’s Director General.

Several factors in the operating environment should be noted:

• In July, the Purchasing Managers Index (PMIs) for global manufacturing output indicated expansion at 50.2. Meanwhile, the global new export orders PMI continued to hover below the 50-mark at 49.4, a marker for contraction.
• Industrial production stayed level in July month-on-month and global cross-border trade increased 0.7%.
• Inflation remained relatively stable in July in the US, Japan, and the EU, with inflation rates of 2.9%, 2.8%, and 2.8%, respectively. Meanwhile, China’s inflation rate increased 0.3 percentage points to 0.6%, the highest level in five months.

Air cargo market in detail – July 2024

July 2024

(% year-on-year)             World share1     CTK        ACTK     CLF (%-pt)           CLF (level)

Total Market      100%     13.6%    8.3%      2.1%      44.4%

Africa    2.0%      6.2%      10.5%    -1.6%     40.0%

Asia Pacific          33.3%    17.6%    11.3%    2.6%      48.0%

Europe 21.4%    13.7%    7.6%      2.7%      49.6%

Latin America     2.8%      11.1%    9.4%      0.5%      33.8%

Middle East        13.5%    14.7%    4.4%      4.1%      45.8%

North America  26.9%    8.7%      7.0%      0.6%      38.2%

1% of industry CTKs in 2023

July Regional Performance

Asia-Pacific airlines saw 17.6% year-on-year demand growth for air cargo in July – the strongest of all regions. Demand on the Within-Asia trade lane grew by 19.8% year-on-year, while the Europe-Asia, Middle East-Asia, and Asia-Africa trade lanes rose by 17.9%, 15.9% and 15.4% respectively. Capacity increased by 11.3% year-on-year.

North American carriers saw 8.7% year-on-year demand growth for air cargo in July. Growth was hampered in part by flight cancelations and airport closures in the US and the Caribbean in relation to Hurricane Beryl.  Demand on the Asia-North America trade lane, the largest trade lane by volume, grew by 10.8% year-on-year, while the North America-Europe route saw a modest increase of 5.3%. July capacity increased by 7.0% year-on-year.

European carriers saw 13.7% year-on-year demand growth for air cargo in July. The Middle East–Europe trade lane led growth, up 32.2%, maintaining a streak of double-digit annual growth that originated in September 2023.  The Europe–Asia route, the second largest market, was up 17.9%. Within Europe also saw double-digit growth, up 15.5%. July capacity increased 7.6% year-on-year.

Middle Eastern carriers saw 14.7% year-on-year demand growth for air cargo in July. As mentioned above, the Middle East–Europe trade lane performed particularly well surging 32.2%, ahead of Middle East-Asia which grew by 15.9% year-on-year. July capacity increased 4.4% year-on-year.

 

Latin American carriers saw 11.1% year-on-year demand growth for air cargo in July. As with North American carriers, growth was hampered in part by flight cancelations and airport closures in the US and the Caribbean related to Hurricane Beryl.  Capacity increased 9.4% year-on-year.

African airlines saw 6.2% year-on-year demand growth for air cargo in July – the lowest of all regions and their lowest recorded figure in 2024. Demand on the Africa–Asia market increased by 15.4% compared to July 2023. July capacity increased by 10.5% year-on-year.

 

July 22, 2024 by Payload Asia

Mr. Mark Sutch (left) and Mr. GertJan Roelands (right) signing the agreement at IndiGo’s Head office in Delhi.

Air France KLM Martinair Cargo (AFKLMP) and IndiGo CarGo are pleased to announce the signing of an extensive Interline Agreement connecting their expansive networks. This marks the first step in their collaborative efforts to further develop a robust cargo partnership. This Special Prorate Agreement will be effective as of 16 July 2024.

The agreement was signed during a meeting at IndiGo’s headquarters. In addition to the signing, the two parties discussed steps to strengthen their collaboration and to explore ways in which they can extend their cooperation in the coming years.

GertJan Roelands, Senior Vice President Commercial, Air France KLM Martinair Cargo said, “India is a strategic growth market for AFKLMP Cargo. Having a strong partner in India is a great building block in our network strategy. The cooperation between IndiGo CarGo and AFKLMP Cargo will give our customers even more choice and solutions.”

Mark Sutch, Chief Commercial Officer, IndiGo CarGo said, “We are consistently expanding IndiGo CarGo’s network and capabilities. The strategic focus on growing international presence is greatly complemented by our partnership with Air France KLM Martinair Cargo. This collaboration not only broadens our service offerings but also allows us to leverage their extensive global reach, thereby providing our customers with a wider array of options across diverse geographies.”

Both companies look forward to better serving the global cargo market, leveraging their complementary networks to provide enhanced services and explore new opportunities in airfreight transportation.

Other Topics: Air Cargo Network, Air Express, Air France-KLM-Martinair Cargo, Air Freight Services, Air Logistics, Asia Pacific Air Cargo, Asia Pacific Air Freight, Asia Pacific Air Logistics, Asia Pacific Shipments, Cargo Flights, E-Commerce Logistics, Express Delivery, Express Logistics, IndiGo CarGo, International Air Shipments, International Express Delivery, Transpacific Air Cargo, Transpacific Air Freight.

31 July 2024       No. 36

Geneva – The International Air Transport Association (IATA) released data for June 2024 global passenger demand with the following highlights:

• Total demand, measured in revenue passenger kilometers (RPK), was up 9.1% compared to June 2023. Total capacity, measured in available seat kilometers (ASK), was up 8.5% year-on-year. The June load factor was 85.0% (+0.5 percentage points (ppt) compared to June 2023).
• International demand rose 12.3% compared to June 2023. Capacity was up 12.7% year-on-year and the load factor improved to 85.0% (-0.3ppt on June 2023).
• Domestic demand rose 4.3% compared to June 2023; capacity was up 2.1% year-on-year and the load factor was 85.0% (+1.7ppt compared to June 2023).

“Demand grew across all regions as the peak Northern summer travel season began in June. And with overall capacity growth lagging demand we saw a very strong average load factor of 85% achieved in both domestic and international operations. Operating with such high load factors is both good and challenging. It makes it even more important for all the stakeholders to operate with equal levels of efficiency to minimize delays and get travelers to their destinations on schedule,” said Willie Walsh, IATA’s Director General.

 

“As the Olympic Games unfold in Paris there is pride across the aviation industry for its continuing role in supporting the Olympic story by bringing many of the athletes, fans, and officials together. It is a great reminder of how aviation transforms our very big world into a global community. We wish France every success as the host of the games and cheer all the athletes who will demonstrate the best of human endeavor over the next weeks,” said Walsh.

Air passenger market in detail – June 2024

(% year-on-year)            World share1     RPK        ASK        PLF (%-pt)           PLF (level)

Total Market      100%     9.1%      8.5%      +0.5%    85.0%

Africa    2.1%      16.2%    5.8%      +6.9%    77.1%

Asia Pacific          31.7%    12.5%    9.4%      +2.3%    82.9%

Europe 27.1%    8.1%      8.4%      -0.2%     87.7%

Latin America     5.5%      9.1%      7.3%      +1.4%    84.2%

Middle East        9.4%      9.9%      9.5%      +0.3%    79.5%

North America  24.2%    5.4%      7.3%      -1.6%     87.6%

1% of industry RPKs in 2023

Regional Breakdown – International Passenger Markets

All regions showed strong growth for international passenger markets in June 2024 compared to June 2023.

Asia-Pacific airlines’ growth remained strong, with a 22.6% year-on-year increase in demand. Capacity increased 22.9% year-on-year and the load factor was 83.0% (-0.2ppt compared to June 2023). The Africa-Asia route was the fastest expanding regional pair, growing 38.1%.

European carriers saw a 9.1% year-on-year increase in demand. Capacity increased 9.8% year-on-year, and the load factor was 87.4% (-0.6ppt compared to June 2023).

Middle Eastern airlines saw a 9.6% year-on-year increase in demand. Capacity increased 9.4% year-on-year and the load factor was 79.7% (+0.1ppt compared to June 2023).

North American carriers saw a 6.6% year-on-year increase in demand. Capacity increased 8.6% year-on-year, and the load factor was 88.7% (-1.6 ppt compared to June 2023), the highest among regions.

Latin American airlines saw a 15.3% year-on-year increase in demand. Capacity climbed 15.6% year-on-year. The load factor was 85.1% (-0.2ppt compared to June 2023).

African airlines saw a 16.9% year-on-year increase in demand. Capacity was up 5.8% year-on-year. The load factor rose to 77.0% (+7.4ppt compared to June 2023). This was the largest improvement in load factor among all regions.

Domestic markets

Domestic demand increased in June, with solid growth in most key markets, bar Japan and Australia. Brazil posted the largest gain with 7.6% year-on-year growth. Year-on-year June domestic ticket sales for July and August travel dipped -0.9%, pointing to a gradual moderation in demand back to pre-pandemic growth rates.

 

Air passenger market in detail – June 2024

June 2024

(% year-on-year)             World share1     RPK        ASK        PLF (%-pt)           PLF (level)

Domestic             39.9%    4.3%      2.1%      +1.7%    85.0%

Dom. Australia  0.8%      -1.0%     -1.2%     +0.2%    81.0%

Dom. Brazil         1.2%      7.6%      3.2%      +3.4%    82.3%

Dom. China P.R.                11.2%    5.5%      -2.0%     +5.9%    83.0%

Dom. India          1.8%      5.2%      9.6%      -3.6%     87.1%

Dom. Japan        1.1%      -0.2%     -0.2%     -0.1%     73.1%

Dom. US              15.4%    5.1%      7.1%      -1.7%     86.8%

1% of industry RPKs in 2023

Note: the six domestic passenger markets for which broken-down data are available account for approximately 31.4% of global total RPKs and 78.8% of total domestic RPKs

▪    IATA (International Air Transport Association) represents some 330 airlines comprising more than 80% of global air traffic.

▪    You can follow us at twitter.com/iata for announcements, policy positions, and other useful industry information.

▪    Fly Net Zero

▪    Statistics compiled by IATA Economics using direct airline reporting complemented by estimates, including the use of FlightRadar24 data provided under license.

▪    All figures are provisional and represent total reporting at time of publication plus estimates for missing data. Historic figures are subject to revision.

▪    Domestic RPKs accounted for about 39.9% of the total market in 2023. The six domestic markets in this report account for 31.4% of global RPKs.

▪    Explanation of measurement terms:

‒  RPK: Revenue Passenger Kilometers measures actual passenger traffic

‒  ASK: Available Seat Kilometers measures available passenger capacity

‒  PLF: Passenger Load Factor is % of ASKs used.

▪    IATA statistics cover international and domestic scheduled air traffic for IATA member and non-member airlines.

▪    Total passenger traffic market shares by region of carriers for 2023 in terms of RPK are: Asia- Pacific 31.7%, Europe 27.1%, North America 24.2%, Middle East 9.4%, Latin America 5.5%, and

Africa 2.1%.

 

 

30 July 2024        No. 35

Geneva – The International Air Transport Association (IATA) released data for June 2024 global air cargo markets showing continuing strong annual growth in demand. This contributed to an exceptional first half-year performance for air cargo, with volumes exceeding 2023, 2022, and even the record-breaking 2021 levels.

• Total demand, measured in cargo tonne-kilometers (CTKs*), rose by 14.1% compared to June 2023 levels (15.6% for international operations). This is the seventh consecutive month of double-digit year-on-year growth.
• Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 8.8% compared to June 2023 (10.8% for international operations).
• Total half-year (H1) demand increased by 13.4% compared to H1 2023, by 4.3% compared to H1 2022, and by 0.02% compared to H1 2021.

“Air cargo demand surged in June. Strong growth across all regions and major trade lanes combined for a record-breaking first-half performance in terms of CTKs. Maritime shipping constraints and a booming e-commerce sector are among the strongest growth drivers. Meanwhile, the sector has remained largely impervious to ongoing political and economic challenges, and the US customs crackdown on e-commerce deliveries from China. Air cargo looks to be on solid ground to continue its strong performance into the second half of 2024,” said Willie Walsh, IATA’s Director General.

Several factors in the operating environment should be noted:

• In June the Purchasing Managers Index (PMI) for global manufacturing output indicated expansion (52.3) while the new export orders PMI registered a small contraction, falling below the critical 50-point benchmark to 49.3.
• Global cross-border trade expanded 0.1% month-on-month in May while industrial production stayed level compared to the previous month.
• Inflation was a mixed picture in June. In the EU and Japan, inflation rates stayed roughly constant compared to the previous month at 2.6% and 2.8% respectively, while dropping in the US to 3.0%. In contrast, China’s inflation rate remained near zero (0.3%) reflecting weak domestic demand amid high unemployment, slow income growth, and a crisis in the real estate sector, a trend that has persisted since 2023.

Air cargo market in detail – June 2024

June 2024

(% year-on-year)             World share1     CTK        ACTK     CLF (%-pt)           CLF (level)

Total Market      100%     14.1%    8.8%      2.1%      45.8%

Africa    2.0%      11.8%    23.8%    -4.1%     38.5%

Asia Pacific          33.3%    17.0%    10.7%    2.7%      49.6%

Europe 21.4%    16.1%    9.1%      3.0%      50.7%

Latin America     2.8%      13.1%    15.5%    -0.7%     33.6%

Middle East        13.5%    13.8%    6.9%      2.9%      47.3%

North America  26.9%    9.5%      6.0%      1.3%      39.8%

1% of industry CTKs in 2023

June Regional Performance

Asia-Pacific airlines saw 17.0% year-on-year demand growth for air cargo in June — the strongest among all regions. Demand on the Africa-Asia trade lane grew by 37.5% year-on-year, while the Europe-Asia, Within Asia and Middle East-Asia trade lanes rose by 20.3%, 21.0% and 15.1% respectively. Capacity increased by 10.7% year-on-year.

North American carriers saw 9.5% year-on-year demand growth for air cargo in June — the weakest among all regions. Demand on the North America-Europe route saw an increase of 6.7%, while the Asia-North America trade lane, the world’s largest, grew by 12.8% year-on-year, the largest annual increase in five months. June capacity increased by 6.0% year-on-year.

European carriers saw 16.1% year-on-year demand growth for air cargo in June. Intra-European air cargo rose by 16.7% compared to June 2023, the sixth month in a row of double-digit annual growth. Europe–Middle East and Europe–Asia routes saw demand increase by 30.2% and 20.3% respectively. June capacity increased 9.1% year-on-year.

Middle Eastern carriers saw 13.8% year-on-year demand growth for air cargo in June. As mentioned above, the Middle East–Europe market performed particularly well with 30.2% annual growth, ahead of Middle East–Asia which grew by 15.1% year-on-year. June capacity increased 6.9% year-on-year.

 

Latin American carriers saw 13.1% year-on-year demand growth for air cargo in June. Capacity increased 15.5% year-on-year. Notably, Latin America posted the second-highest increase in international demand growth at 17.2% in June, up 6.3 percentage points compared to the previous month.

African airlines saw 11.8% year-on-year demand growth for air cargo in June. Demand on the Africa–Asia market increased by 37.5% compared to June 2023, the strongest performance of all trade lanes. June capacity increased by 23.8% year-on-year.

>Read the latest Cargo Market Analysis

For more information, please contact:

Corporate Communications

Tel: +41 22 770 2967

Email: corpcomms@iata.org

Local firms are now paying up to 50 per cent more to ship goods by air instead of sea, in order to avoid months of shipping delays.

Air freight rates in Singapore set to continue rising amid worldwide port congestion

A FedEx cargo plane on the tarmac at Fort Lauderdale-Hollywood International Airport on Apr 20, 2021, in Fort Lauderdale, Florida, US. (Photo: AP)

With cargo planes packed for the next two months, industry players expect air freight rates to continue going up. This is especially as peak delivery season approaches.

In May, CNA reported that shipping delays in Singapore more than doubled in recent weeks amid port congestion and a shortage of container ships.

This was due to various factors such as diversions caused by unrest in the Red Sea.

At the time, port operator PSA Singapore said the volatility was likely here to stay, and it would continue to ramp up capacity and smart technologies in its terminals.

According to the International Air Transport Association, demand for air cargo in the Asia-Pacific region has gone up to about 20 per cent on-year in May. However, supply for air capacity only stands at 9 per cent.

For e-commerce company Singapore Home Cooks, flying a 95kg cargo from source markets like Japan and South Korea costs about S$1,000 (US$740) – five times more than shipping it by sea.

But sea freight is a risk the firm cannot take, given that it brings in perishable items like fruits and snacks.

It has raised prices slightly, explaining to customers that this is due to higher logistics costs, said the firm’s corporate communications manager Canlian Liew.

“I think 80 per cent (of the time), we absorb the cost ourselves, and then only 20 per cent we will do a little bit more mark-up,” she added.

The firm sources products from overseas, especially exclusive items that are usually not available in Singapore, and sells them through Facebook livestreaming. It then usually works with a logistics partner to ship the items over.

Sea shipments have been delayed to at least a month due to port congestion. A year ago, it would have taken half that time for cargo to arrive in Singapore.

“Last time, it was one ship all the way to Singapore so it’s very straightforward,” noted Ms Liew.

 

“But right now, they use a different route. Every different point, our cargo gets unloaded and reloaded onto a different ship, and then that’s where they … are not able to track the shipment anymore. So they are also not able to give us an estimated timeline,” she added.

This means the company cannot assure their customers that goods will arrive within the usual delivery timeline of four to six weeks, Ms Liew said.

She recounted: “I remember the experience that my admin team had was that every single day, there were customers chasing us for updates. Asking, ‘Hey, when (are) my shipments coming? When is my mushroom arriving? Has the shipment arrived in Singapore?’

“Luckily, a majority of our customers are quite understanding, because the port congestion is something that is not up to us to control.”

She said that about 20 per cent of customers asked for refunds, which means the company also incurred losses.

Shipping delays, higher freight rates: Ports in Asia, including Singapore, see heavy congestion

Air freight rates rise amid Red Sea crisis and in run-up to Chinese New Year

LOGISTIC PROVIDERS EXTEND NETWORKS

Logistic providers said that companies should plan ahead and work closer with their freight forwarders to avoid any delays.

To cope with rising air freight demand, the providers also told CNA they are working hard to extend their networks.

Mr Vincent Wong, Asia airfreight director from global logistics firm CH Robinson Freight Services, said it has expanded its portfolio of airlines by about 30 per cent over the last two years.

“These airlines … each have their own network, so as we add new airlines into our portfolio, their network becomes part of our network and that also becomes part of our customer network. And together, it becomes a solution,” he added.

The company has seen an uptick of about 20 per cent in inquiries on switching from sea to air freight.

Mr Wong said costs were already rising after the COVID-19 pandemic, making it unsustainable to go back to pre-pandemic rates.

“We started the year with rates increasing almost every month,” he added.

“Right now, it’s supposed to be the low season, but we’re definitely not seeing any low season this period.”

 

Geneva–The International Air Transport Association (IATA) is collaborating with the Aviation Sustainability Forum (ASF) to launch a standardized Cabin Waste Composition Audit (CWCA), with the ASF Cabin Waste Composition Auditing Platform to be launched in September 2024.

CWCA audits have already been trialed in two waves, covering 25 flights (short, medium, and long-haul) at Singapore’s Changi Airport in November 2023 and April 2024. ASF conducted the audits based on a methodology developed by IATA. Preliminary results indicate that the sector is generating over 3.6 million metric tonnes of cabin and catering waste annually, with 65% being food and beverage waste. Untouched meals account for 18% of all waste.

Audit data will guide the airline industry and policy makers in their efforts to reduce the levels of waste produced and improve circularity by identifying opportunities for re-use and re-cycling. Previous IATA research identified the lack of a standardized methodology with respect to conducting cabin waste audits and, as a result, harmonized data is not available to underpin decision-making by policymakers, airlines, and caterers regarding waste-related issues. A standardized audit will help solve these issues and enable the sector to demonstrate progress towards waste reduction and improved circularity.

“Managing and reducing waste is an important component of aviation’s overall sustainability. Obtaining standardized and comparable data regarding the composition and quantity of waste from flights will help the industry to reduce the waste it generates. Better data will also help policymakers to harmonize regulations, which in turn can help optimize the industry’s capability to sort, re-cycle and safely re-use waste that cannot be avoided. Working with ASF in developing this audit program is a significant step forward in improving the circularity of the sector,” said Marie Owens Thomsen, IATA’s Senior Vice President Sustainability and Chief Economist.

“The ASF’s mission is to help the aviation sector reduce the levels of cabin waste generated and achieve higher levels of waste recovery and circularity. Working with IATA to develop a cabin waste composition auditing standard for the sector is a significant step forward. Effectively managing cabin waste is a challenge that can be solved with the backing of data. It is the responsibility of the sector and its regulators to come together, understand the problem and align on the needed solutions,” said Matt