Business View Magazine | Volume 9, Issue 2

12 BUSINESS VIEW MAGAZINE VOLUME 9, ISSUE 2 R FOR industrial production was up 4.0% over the same period. ◊ The inventory-to-sales ratio remains low. This is positive for air cargo as manufacturers turn to air cargo to rapidly meet demand. ◊ The cost-competitiveness of air cargo relative to that of sea-container shipping remains favorable. ◊ The recent surge in COVID-19 cases in many advanced economies has created strong demand for PPE shipments, which are usually carried by air. • Supply chain issues that slowed the pace of growth in November remain as headwinds: ◊ Labor shortages, partly due to employees being in quarantine, insufficient storage space at some airports and processing backlogs continue to put pressure on supply chains. ◊ The December global Supplier Delivery Time Purchasing Managers Index (PMI) was at 38. While values below 50 are normally favorable for air cargo, in current conditions it points to delivery times lengthening because of supply bottlenecks. “Air cargo had a stellar year in 2021. For many airlines, it provided a vital source of revenue as Some relief on supply chain constraints occurred naturally in December as volumes decreased after peak shipping activity ended in advance of the Christmas holiday November and the best performance since April 2021 (11.4%). Global capacity was 4.7% below 2019 levels (-6.5% for international operations). • The lack of available capacity contributed to increased yields and revenues, providing support to airlines and some long-haul passenger services in the face of collapsed passenger revenues. In December 2021, rates were almost 150% above 2019 levels. • Economic conditions continue to support air cargo growth. ◊ Global goods trade rose 7.7% in November (latest month of data), compared to pre-crisis levels. Global