AIR cargo of Asia-Pacific carriers contracted 2.2 percent in February from the same month a year earlier due to the impact of the coronavirus disease (COVID-19), according to International Air Transport Association (IATA).
“Asia-Pacific carriers were the most affected with a seasonally-adjusted drop of 15.5 percent from January to levels last seen in early 2014. What has unfolded since is a story of two halves. The disruption of global supply chains led to a fall in demand. But the dramatic disruption in passenger traffic resulted in even deeper cuts to cargo capacity. And the industry is struggling to serve remaining demand with the limited capacity available,“said Alexandre de Juniac, IATA director general and chief executive officer.
“We only got a first glimpse of this in February. Among all the uncertainty in this crisis, one thing is clear–air cargo is vital. It is delivering lifesaving drugs and medical equipment. And it is supporting global supply chains. That’s why it is critical for governments to remove any blockers as the industry does all it can to keep the global air cargo network functioning in the crisis and ready for the recovery,” de Juniac added.
Global air freight markets it showed demand, measured in cargo ton kilometers (CTKs), decreased by 1.4 percent compared to the same period in 2019. Adjusting the comparison for the impact of the Lunar New Year, which fell in February 2019, and the leap year in 2020, which meant an additional day of activity, seasonally-adjusted demand was down 9.1 percent month-on-month in February.
Last February, IATA said the negative impacts of the COVID-19 crisis on air cargo demand were becoming visible.
The month witnessed several significant developments: manufacturing production in China, one of the world’s largest air cargo markets, dropped sharply due to widespread factory closures and travel restrictions.
Global export orders fell to a historically low level. Significant cargo capacity was lost as a result of airlines reducing passenger operations in response to government travel restrictions due to COVID-19, severely impacting global supply chains.
Cargo capacity, measured in available CTKs , dropped 4.4 percent year-on-year in February 2020. This is subject to the same distortions as the non-seasonally adjusted demand numbers.
Locally, the country’s three airline operator, Philippine Airlines, Cebu Air Inc. and Philippine AirAsia continue their cargo operations in select airports in the country to ensure the unhampered flow of cargoes amidst the enhanced community quarantine in placed.
