IN November, global air cargo demand surged by 8.3 per cent year-on-year, marking the swiftest pace since December 2021, as reported by the International Air Transport Association (IATA), reports London's S&P Global.
This robust growth suggests a rebound in the jet fuel demand post the pandemic.
The increase was particularly notable on routes covering the Middle East and Asia, driving the overall year-on-year growth.
Although the comparison is based on a low base in November 2022, the sustained improvement in demand, measured in cargo tonne-kilometers, reflects the fourth consecutive month of positive momentum.
As of November, air cargo tonne-kilometres were only 2.5 per cent below pre-Covid crisis levels.
While cargo freight constitutes a smaller portion of total jet fuel demand than passenger flights, industry analysts closely monitor this segment as a crucial indicator of the global economy's health.
The data reveals a deceleration in an economic slowdown.
Jet fuel demand is anticipated to continue its recovery path in 2024, albeit at a slower pace compared to the rapid growth observed in the past two years.
Analysts at S&P Global Commodity Insights, in a report dated January 5, projected that Asia's jet fuel/kerosene demand growth for 2024 will ease to 264,000 b/d, further moderating to 212,000 b/d in 2025, reflecting the normalisation of travel post the Covid crisis.
Source: shippingazette