In recent years, the global Air Cargo Industry has been expected to grow substantially, with an anticipated increase of 19.52 million tonnes from 2023 to 2027. The growth is projected to accelerate at a CAGR of 5.32% during these years.*
The e-commerce sector is one of the significant drivers of this growth, witnessing a remarkable 14% increase in Air Cargo volume in 2019 compared to previous years.
Moreover, the healthcare and pharmaceutical industries have emerged as the fastest-growing sectors within Air Cargo, with expectations of continued expansion in the coming years.
According to Cargo Facts Consulting, the global freighter fleet is expected to rise from 1,782 to 2,920 cargo aircraft between 2019 and 2039, with the milestone of 2,000 freighters projected to be achieved by 2028. However, the global demand measured in cargo tonne-kilometers (CTKs), faced a 5.2% decline compared to May 2022.
Now, let's delve into the regional performances:
- Asia-Pacific: In May 2023, Air Cargo volumes for Asia-Pacific airlines experienced a 3.3% decline compared to the same month in 2022. However, available capacity in the region increased significantly by 38.3% with the introduction of more belly capacity from the passenger side of the business.
- North America: North American carriers declined among all regions for the third consecutive month, with an 8.1% decrease in cargo volumes in May 2023. Nevertheless, capacity increased modestly by 1.2% during the same period.
- Europe: European carriers faced a 6.7% decrease in cargo volumes in May 2023 compared to May 2022. Conversely, capacity increased by 5.6% during the same period.
- Middle East: Middle Eastern carriers experienced a 3.1% year-on-year decrease in cargo volumes in May 2023, with a decline in the previous month (-6.7%). capacity.
- Africa: African airlines reported a 2.4% decrease in demand compared to May 2022, while capacity in May increased by 9.2% as compared to the same month in the previous year.
The graph highlights the demand for cargo volumes in different regions in May 2023.
Automation and digitalisation have transformed logistics, giving rise to the era of e-commerce and enhancing the industry's efficiency. Despite facing challenges with global demand in 2023, the regional performances showcase diverse dynamics.
The Air Cargo Industry in 2023 is adapting to changing global dynamics. With a projected increase of 19.52 million tonnes over the next four years and a CAGR of 5.32%, the industry is set to play a pivotal role in meeting the demands of a rapidly evolving world.
Source* bit.ly
