The total Ctrack Freight Transport index declined by less than 2% compared to December of the previous year, which is a very good indication of the economic recovery of the trade and transport of goods.
The index for the fourth quarter of 2020 showed growth of 5,3% compared to the third quarter. While the growth has slowed compared to the massive improvements seen in the third quarter of 2020, it is still good news.
“The Ctrack Freight Transport index shows that the economy is slowly getting back to normal, however, the government needs to ease the restrictions on sectors such as travel in order for the industry to show further recovery, “comments Hein Jordt, Managing Director of Ctrack SA.
The Ctrack Freight and Transport Index is still tracking 5,6% below its 2019 high and 7% below its all-time high achieved early in 2018, this shows that prior to the first COVID-19 lockdown the South African economy was already in a recession and until major economic sectors such as Travel and Tourism return to normal, it is unlikely that the Ctrack Freight Transport index will get near those previous record highs.
For many decades Air Freight has been one of the fastest-growing freight transport sectors. Due to the fact that the tourism industry remains under immense pressure, a closer look at the Air Freight industry was warranted as traditionally passenger aircraft carry more cargo than actual freight aircraft.
The unexpected recovery of Air Freight
Air Freight reached a twelve-year low in May 2020 but has remarkably recovered to record its first increase in volume of cargo and freight ton per kilometre.
For the first time in 20 months, the volume of air cargo, number of unscheduled flights and the IATA international air freight indices all showed positive growth, with a 2,1% year on year growth.
“The improvement of Air Freight in the final quarter of 2020 as measured by Ctrack of 30,6% is nothing short of a miracle. This performance is amazing if one takes into account that there was less international travel and fewer scheduled flights and shows the resilience of this sector,” said Jordt.
Even though Africa faired slightly better than the rest of the world, during the COVID-19 hard lockdown, Air cargo was the worst affected sector globally with IATA estimating total losses of $86 billion in 2020.
In South Africa, Airfreight received no government aid, space was at a premium as there were less flights and prices rose by between 200 and 300%, yet the sector has bounced back against all odds, showing how resilient it is. Over 20 thousand tons were transported during the month of December despite curfews and international flight limitations.
57% of all Airfreight is transported as belly freight, aboard normal passenger aircraft, while the remaining 43% is flown on dedicated cargo planes. Further recovery in 2021 is expected to be slow as passenger air traffic is still far below normal levels and this is likely to continue for some time.
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