Air cargo is ‘slowly getting back on its feet,’ according to Clive

The latest air cargo market analysis from CLIVE Data Services suggests air cargo is taking its first steps toward structural market recovery. Air cargo has continued to see unexpected levels of activity throughout the pandemic, creating an atypical peak season. As the changes caused by the pandemic, including an increased demand for personal protective equipment, decreased capacity, and higher air freight rates, begin to diminish, the air cargo industry seems to be “slowly getting back up on its feet.” The company’s data shows June outperformed May in absolute volumes with the volumes at the end of June 12% higher than the last week of May. Year-over-year growth increased in June, with global volumes down 25% compared to June 2019, compared to a 31% annual disparity for May. CLIVE also monitors the “ dynamic load factor ,” a new metric based on the volume and weight of cargo flown and capacity available. June’s dynamic load factor was 71%, the highest level recorded since 2018. [caption id="attachment_85315" align="alignleft" width="1024"] Courtesy of CLIVE Data Services[/caption] “We are starting to see a more recognizable airfreight market following more logical economic principles and more logical rates,” said Niall van de Wouw, CLIVE’s managing director. Though general air cargo volumes are beginning to return, passenger flights and the usual increase in belly capacity due to summer holiday travel have not. Available capacity remained mostly flat week over week in June with the last two weeks of the month increasing slowly week over week by around 1.5% per week. “The next test will be how an influx of normal passenger flights, which are not driven by cargo demand, will impact dynamic load factor,” van de Wouw said. CLIVE is part of an Australian mathematics company, Biarri Group, focused on providing software applications to improve commercial decision making in the air cargo industry.

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