Saudi Arabia remains top contributor as Pakistan workers remittances increase 29% year on year

RIYADH: Saudi Aramco has increased the official selling prices for propane and butane for February, according to a statement released on Thursday.

The new prices are set at $635 per tonne for propane and $625 per tonne for butane, reflecting a $10 rise for each product compared to the previous month.

Both propane and butane are types of liquefied petroleum gas, commonly used for heating, vehicle fuel, and as feedstock in the petrochemical industry. Although similar, these gases have different boiling points, making them suitable for a range of specific applications.

Aramco's OSPs for LPG serve as important benchmarks for contracts supplying these products from the Middle East to the Asia-Pacific region.

Propane demand typically peaks in the winter months, as it is a key source of home heating, and this seasonal increase often drives up prices.

The fluctuations in price are a direct reflection of supply and demand dynamics, with colder weather pushing prices higher in line with greater consumption.

RIYADH:  Middle Eastern air carriers saw a 13 percent increase in air cargo demand in 2024 compared to the previous year, driven by the e-commerce boom and various ocean freight restrictions, according to an analysis.

In its latest report, the International Air Transport Association said airlines in the Middle East region handled 13.6 percent of the cargo transported internationally in 2024. 

The growth of the Middle East’s aviation sector is closely tied to the region’s economic diversification efforts, particularly in Saudi Arabia, which seeks to reduce its reliance on oil revenues. As part of its National Aviation Strategy, the Kingdom aims to handle 4.5 million tonnes of cargo annually by 2030 and expand its network with over 250 direct destinations from the country’s airports to transnational markets.

Globally, total air cargo demand, measured in available cargo tonne-kilometers, surged by 11.3 percent in 2024 compared to the previous year.

International routes witnessed several issues, including attacks on maritime vessels in the Red Sea, which saw the number of ships using the Suez Canal drop 22 percent in 2023-24 compared to the previous year. 

Due to escalating tensions in waterways, several shipping companies diverted their vessels around the Cape of Good Hope, which increased delivery times by 10 days or more on average.

“Air cargo was the standout performer in 2024 with airlines moving more air cargo than ever before. Importantly, it was a year of profitable growth. Demand, up 11.3 percent year-on-year, was boosted by particularly strong e-commerce and various ocean shipping restrictions,” said Willie Walsh, director-general of IATA. 

He added: “This, combined with airspace restrictions which limited capacity on some key long-haul routes to Asia, helped to keep yields at exceptionally high levels. While average yields continued to soften from peaks in 2021-2022 they averaged 39 percent higher than 2019.”

According to the latest analysis, Middle Eastern carriers’ air cargo capacity expanded by 5.5 percent in 2024 compared to the previous year. 

In December, air carriers in the region witnessed a cargo demand growth of 3.3 percent year on year, while capacity rose by 0.2 percent. 

APAC region driving growth

According to the report, airlines operating in the Asia-Pacific region witnessed a 14.5 percent year-on-year growth in air cargo demand, with capacity rising by 11.3 percent during the same period. 

APAC airlines also handled 34.2 percent of global air cargo in 2024.

European carriers experienced an 11.2 percent year-on-year demand growth in 2024, while capacity rose 7.8 percent. 

Air carriers in Europe also handled 21.5 percent of the total air cargo. 

Latin American airlines saw a 12.6 percent surge in demand, handling 2.9 percent of global air cargo last year.

African airlines saw an 8.5 percent year-on-year demand boost for air cargo in 2024. 

The capacity of air carriers in Africa also rose by 13.6 percent in 2024 compared to the previous year.  

North American carriers saw 6.6 percent year-on-year demand growth for air cargo in 2024 — the lowest of all regions. 

Future outlook

According to IATA, global air cargo demand growth is expected to expand by 5.8 percent in 2025. 

“Economic fundamentals point to another good year for air cargo — with oil prices on a downward trajectory and trade continuing to grow. There is no doubt, however, that the air cargo industry will be challenged to adapt to unfolding geopolitical shifts,” said Walsh. 

“The first week of the Trump administration demonstrated its strong interest in using tariffs as a policy tool that could bring a double whammy for air cargo — boosting inflation and deflating trade,” he added.