Supply Chain Disruptions Cut Into Air Cargo Global Demand - Int'l. Air Transport Body

WASHINGTON (Pakistan Point News / Sputnik - 11th January, 2022) The recovery in the global demand for air cargo operations slowed down in November of 2021 because of disruptions in transnational supply chains, the International Air Transport Association (IATA) said on Tuesday.

"IATA released data for global air cargo markets showing slower growth in November 2021. Supply chain disruptions and capacity constraints impacted demand, despite economic conditions remaining favorable for the sector," the release said in a press release.

IATA explained that global demand, as measured in cargo tonne-kilometres (CTKs), increased by 3.7% in November of 2021 compared to November of 2019.

"This was significantly lower than the 8.2% growth seen in October 2021 (9.2% for international operations) and in previous months. Capacity was 7.6% below November 2019 (-7.9% for international operations). This was relatively unchanged from October. Capacity remains constrained with bottlenecks at key hubs," the release said.

Labor shortages, partly due to employees being in quarantine and other coronavirus pandemic measures, insufficient storage space at some airports and processing backlogs exacerbated by the year end rush created supply chain disruptions. Several key airports, including at New York, Los Angeles and Amsterdam, reported congestion, the release added.