Hindered by weak world trade and increasing capacity, demand growth for air cargo slowed to just 0.9 percent year-over-year for the month, according to the International Air Transport Association.
Growth in global airfreight volumes slowed to just 0.9 percent year-over-year in May 2016, according to recent data from the International Air Transport Association (IATA).
Demand fell or remained stagnant across all regions during the month with the exception of Europe and the Middle East, where volumes grew 4.5 percent and 3.2 percent, respectively, compared with the same 2015 period.
Volumes at Latin American airlines continued to decline, falling 9.7 percent despite a 7 percent drop in capacity as economic conditions continued to worsen, particularly in Brazil, the region’s largest economy. The decline follows a 5.9 percent year-over-year drop in April.
Asia Pacific airfreight carriers saw April volumes slip 0.7 percent compared with last year due primarily to weak trade volumes both globally and in the region.
North American volumes were relatively stagnant, falling 0.2 percent year-over-year as the strength of the U.S. dollar has kept the U.S. export market in check.
Growth was relatively flat for African airlines compared to the same period last year, ticking up 0.3 percent. Carrier capacity, however, surged 22.2 percent year-over-year thanks to long-haul expansion, continuing the trend seen since December 2015.
“Broad weakness in world trade volumes, which have largely tracked sideways since the end of 2014, accounts for about 80 percent of airfreight’s sluggish performance,” IATA said.
Overall freight capacity measured in available freight tonne kilometers (AFTKs) increased by 4.9 percent year-over-year in May.
“Global trade has basically moved sideways since the end of 2014 taking air cargo with it,” added IATA Director General and CEO Tony Tyler. “Hopes for a stronger 2016 are fading as economic and political uncertainty increases. Air cargo is vital to the global economy. But the business environment is extremely difficult and there are few signs of any immediate relief.”
IATA: Airfreight demand growth slips in May
