Air Cargo Market Is Growing at a Strong Pace Despite the Many-fold Increase in the Rates

According to the International Air Transport Association (IATA), the demand for air cargo services increased by 12% in April 2021 compared to the values in April 2019. As the organization emphasizes, to make the correct analysis of the demand for air cargo transportation, the figures of April 2021 and 2019 should be compared, since the figures for 2020 may be distorted due to the restrictions imposed by different countries in response to coronavirus.

North American carriers reported a 25.6% increase in the international demand in April 2021. European carriers can boast of a 11.4% rise in the demand for air cargo services, while the airlines of the Asia-Pacific region posted a growth of 9.2%, carriers from the Middle East region – 15.3% and African airlines – 30.6%.

The demand for air cargo transportation in Latin America fell by 32.7% in April 2021 against the same period in 2019.

According to the research, there has been an increase in competitiveness of air transportation compared to sea services. Air cargo rates have stabilized since reaching a peak in April 2020, while container rates remain relatively high and continue to grow.

“Air freight rates increased by 4–5 times last spring, decreasing slightly by June 2021. The stabilization of rates strongly promotes the development of cargo charter services. However, the rates are unlikely to ever return to pre-pandemic levels. At least, this will not happen in the near future”, - comments Air Transportation Department of TELS Group on the situation.