International Air Transport Association (IATA) has stated that the demand for global air freight markets measured in freight tonne kilometers (FTKs), decreased by 4.5% in September 2019, compared to the same period in 2018.
According to IATA, This marks the eleventh consecutive month of year-on-year decline in freight volumes, the longest period since the global financial crisis in 2008.
Freight capacity, measured in available freight tonne kilometers (AFTKs), rose by 2.1% year-on-year in September 2019. Capacity growth has now outstripped demand growth for the 17th consecutive month.
Air cargo continues to suffer from:
- the intensifying trade war between the US and China, and South Korea and Japan,
- the deterioration in global trade,
- and weakness in some of the key economic drivers.
Global export orders continue to fall. The Purchasing Managers Index (PMI) tracking new manufacturing export orders has pointed to falling orders since September 2018.
“The US-China trade war continues to take its toll on the air cargo industry. October’s pause on tariff hikes between Washington and Beijing is good news. But trillions of dollars of trade is already affected, which helped fuel September’s 4.5% year-on-year fall in demand. And we can expect the tough business environment for air cargo to continue,” said Alexandre de Juniac, IATA’s Director General and CEO.