Supply-chain snags, quarantines hurting global air-cargo growth

Global air-cargo growth slowed sharply in November as demand was hit by supply-chain disruptions, partly because Covid-19 restrictions left workers stuck in quarantine, causing labor shortages. Demand for air freight, measured in cargo ton kilometers, rose 3.7% from the same month in 2019, prior to the pandemic, according to the International Air Transport Association. That’s less than half the 8.2% increase seen in October and also significantly lower than in previous months, IATA said. Global air-cargo growth slowed sharply in November as demand was hit by supply-chain disruptions, partly because Covid-19 restrictions left workers stuck in quarantine, causing labor shortages. Demand for air freight, measured in cargo ton kilometers, rose 3.7% from the same month in 2019, prior to the pandemic, according to the IATA. That’s less than half the 8.2% increase seen in October and also significantly lower than in previous months, IATA said. “The pressures of labor shortages and constraints across the logistics system unexpectedly resulted in lost growth opportunities,” IATA DG Willie Walsh said Tuesday. “Manufacturers, for example, were unable to get vital goods to where they were needed, including PPE,” he said, referring to personal protective equipment, demand for which has jumped due to a surge in Covid cases in many developed economies. <br/>IATA called on governments to swiftly address supply-chain pressures, including taking steps to ensure aircrew operations aren’t hindered by Covid restrictions designed for travelers and providing policy incentives to address labor shortages. <br/>