Freight Air freight growth keeps slowing down in June
The International Air Transport Association (IATA) has released the results for global air freight markets in June.
The results show, that in June 2018, the demand for global air freight markets rose by 2.7%, compared to the same period in 2017.
This number reflects the ongoing slowdown in air cargo growth that began in the beginning of 2018. Since then, the growth stood at 4.7%, which is less than half the growth rate that was noticed in the first half of 2017.
In June 2018, the freight capacity rose by 4.1% and has, since March this year, outstripped demand growth in every month.
According to IATA, three main factors are responsible for this development. Firstly, the restocking cycle ended in 2018 and following this there was a marked fall in volumes for air freight from March. Then, a structural slowdown was being noted in the conditions for global trading.
In the United States, Japan and China order books for factory exports have turned negative. Also, the grounding of Nippon Cargo Airlines meant the shortage of important capacities for transatlantic routes, especially between Asia and North America.
“Air cargo continues to be a difficult business with downside risks mounting. We still expect about 4% growth over the course of the year. But the deterioration in world trade is a real concern," said Alexandre de Juniac, IATA’s Director General and CEO.
Airlines in all regions – expect Africa – reported a year-on-year increase in freight volumes for June 2018. The slow growth in Asia-Pacific dragged down the global growth rate significantly.
Source © iata.org