The air cargo business is delayed as a result of global financial difficulties, but 2022 is still predicted to be one of the industry's strongest years ever, with cargo revenues predicted to be nearly twice as high as they were before the pandemic.
FREMONT, CA: Although the growth of the air cargo industry was delayed due to global macroeconomic pressures, 2022 is still expected to be one of the industry's strongest years ever, with cargo revenues expected to be nearly twice as high as they were before the pandemic. The transportation industry anticipates cargo to continue boosting the performance of the sector. This year, cargo volumes are anticipated to increase despite a moderate yield due to the greater belly capacity provided by passenger aircraft that are returning to service.
Airlines are tough. More people than ever are choosing air travel. In addition, freight is performing well despite the rising economic unpredictability. Even though there are still issues with costs, particularly fuel, and some lingering restrictions in a few important markets, there is a reason for optimism right now.
Revenues from cargo are predicted to be USD 191 billion, down 6.4 per cent from the record of USD 204 billion reached in 2021 and almost twice as much as the USD 100 billion realized in 2019. Air freight is expected to account for 24.4 per cent of all passenger and cargo airline sales, according to the International Air Transport Association. In 2020 and 2021 respectively, freight comprised 36.2 per cent and 40.3 per cent of airline revenues, compared to around 12 per cent during the previous four years, as passenger traffic was adversely impacted by the pandemic.
This year, more than 75 million tonnes are anticipated to be transported by air, setting a new record. On a seasonally adjusted basis, however, growth has levelled off, despite being at nearly record-high quantities. Despite this, the International Air Transport Association predicts that aviation cargo volumes will be 11.7 per cent more than they were before the pandemic, with a scorching 2021 growth rate of 6.9 per cent compared to 2019.
According to the International Air Transport Association, cargo shipment volumes fell 11.2 per cent in April due to weaker cross-border trade and were down one per cent from the previous year, which was a difficult year for the cargo sector. According to more recent data from Clive Data Services, a market intelligence firm, air freight volumes fell by seven per cent in May compared to 2021.
Due to the extraordinary economic swings brought on by the pandemic, the development of the world's merchandise trade is predicted to slow to three per cent this year from double-digit growth last year. Over the previous 20 years, global trade increased by six per cent per year on average. As a result of rising prices for commodities due to inflation, the International Air Transport Association predicts that the value of international trade transported by air will reach around USD 8.2 trillion this year, up from USD 7.5 trillion in 2021.
International goods movement by air is being hampered by several factors, including heavy-handed COVID lockdowns that are delaying factory production, the Ukraine war, a decline in new export orders, a shift in consumer spending toward services in a relaxed pandemic environment, high inflation, and congestion at airport cargo terminals. Still, the industry will witness growth, enabling businesses across the globe to continue their logistics operations.