Airfreight volumes rose 6.1 percent in September from a year prior, coinciding with a rise in new export orders, and also possibly due to one-off factors such as Hanjin’s insolvency and the rushed replacement of Galaxy Note 7 devices.
The International Air Transport Association (IATA) reported Thursday global airfreight volumes in September rose 6.1 percent from a year prior, the largest increase since February 2015 when the disruption at U.S. West Coast seaports lead to a shift in freight shipments from ocean to air.
Meanwhile, available airfreight capacity in September rose 4.7 percent year-over-year, while load factors remained historically low, keeping yields under pressure.
The sharp growth in airfreight volumes during the month from a year prior coincided with a turnaround in new export orders in recent months, the IATA said.
Growth may also relate to one-off factors, including the boost in air traffic following the sudden collapse of South Korean liner carrier Hanjin Shipping at the end of August, along with the rushed replacement of the Galaxy Note 7 devices during the month.
IATA Director General and CEO Alexandre de Juniac said the air cargo sector still faces some major hurdles with growth in world trade virtually at a standstill.
However, Juniac noted how the conclusion of a free trade deal, known as the Comprehensive Economic and Trade Agreement (CETA), between the European Union and Canada is good news for the economies involved and for the air cargo industry. CETA was signed this past weekend and will eliminate virtually all tariffs on goods traded between Canada and the European Union, and will also open new markets for businesses in both regions. “The EU-Canada agreement is a welcome respite from the current protectionist rhetoric and positive results should soon be evident,” Juniac said. “Governments everywhere should take note and move in the same direction.”
Looking at each individual region, Asia Pacific airfreight carriers saw volumes rise 5.5 percent in September compared to a year prior, corresponding with signs of an increase in export orders in China and Japan over the last few months.
Volumes flown by European airfreight carriers during the month soared 12.6 percent year-over-year, corresponding with an increase in reported new export orders in Germany during the last few months.
North American airfreight carriers increased volumes 4.5 percent in September from a year prior. The IATA noted how the strong U.S. dollar continues to keep the U.S. export market under pressure.
Meanwhile, volumes flown by Middle Eastern airfreight carriers in September ticked up 1.2 percent from a year earlier, the slowest growth pace since July 2009, partly due to weaker conditions in the Middle East to Asia and the Middle East to North America markets.
Latin American airfreight carriers saw volumes slip 4.5 percent year-over-year in September. On a bright note, the comparative strength of the U.S. economy has helped increase volumes between North and South America.
Volumes transported by African airfreight carriers surged 12.7 percent from September 2015.
Overall, the Asia-Pacific comprises 38.9 percent of the total freight traffic market share, based on freight ton kilometers, followed by Europe at 22.3 percent, North America at 20.5 percent, the Middle East at 14 percent, Latin America at 2.8 percent and Africa at 1.5 percent.
IATA: Airfreight volumes soar in September
