The global demand for air freight has declined by 4.8% in June 2019 compared to the same period last year, according to the International Air Transport Association (IATA) data for global air freight markets. This is the eighth consecutive month showing a year-on-year decline in freight volume. The trade dispute between the US and China is a reason cited for the scenario.
“Global trade continues to suffer as trade tensions—particularly between the US and China—deepen. As a result, air cargo markets continue to contract. Nobody wins a trade war. Borders that are open to trade spread sustained prosperity. That’s what our political leaders must focus on,” said Alexandre de Juniac, IATA’s Director General and CEO.
African airlines report growth in freight demand
In the region-wise report, IATA stated that the airlines in all regions except Africa had reported a reduction in freight demand. However, capacity has increased. African airlines reported an increase in the demand, of 3.8% compared to the same period a year. The capacity has increased by 16.6%.
On the other hand, the airlines in Asia-Pacific witnessed a reduction of 5.4% in June 2019. The air freight demand, measured in freight tonne-kilometres (FTKs), have dropped 10% in the Asia-Pacific region in the past year. Airfreight capacity increased by 1.8% over the same period.
North American airlines have also reported a drop in freight demand by 4.6% year-on-year in June 2019. The capacity has increased by 1.9% over the year. The European airlines have posted a decline of 3.6% in freight demand in June 2019. The capacity in the region increased by 2.8% year-on-year.
The Middle Eastern airlines’ freight volumes decreased 7.0% in June 2019 compared to the year-ago period. The capacity in the Middle East increased by 2.7%. The Latin American airlines experienced a decrease in freight demand in June 2019 of 1.0% compared to the same period last year and capacity increased by 4.6%.