The International Air Transport Association attributed the continued growth to more shipments of silicon materials for high value electronics, an apparent turnaround in new export orders, and the modal shift to air cargo due to the collapse of Hanjin.
Global airfreight demand grew 11.2 percent year-over-year in November
Source: Pierre-Yves Babelon / Shutterstock
Global airfreight volumes in November 2016 rose 6.8 percent compared with the same 2015 period, according to the most recent data from the International Air Transport Association (IATA).
The November increase was a slight slowdown from the 8.4 percent year-over-year growth seen in October, a 20-month high, but still well above the 10-year average growth rate of 2.6 percent.
Available airfreight capacity rose 4.4 percent year-over-year for the month.
IATA attributed the continued growth in demand primarily to an increase in the shipment of silicon materials typically used in high-value consumer electronics, and an apparent turnaround in new export orders, as well as a modal shift to air cargo resulting from the August 2016 collapse of South Korean ocean carrier Hanjin Shipping Co.
“Air cargo enjoyed a strong peak season in November. And there are encouraging signs that this growth will continue into 2017, particularly with the shipment of high-value consumer electronics and their component parts,” IATA’s Director General and CEO Alexandre de Juniac said in a statement.
“But, the trend in world trade is still stagnant,” he added. “So it remains critically important for the air cargo industry to continue to improve its value offering by implementing modern customer-centric processes.”
On a regional level, all of the areas tracked by IATA showed year-over-year growth in October with the exception of Latin America.
Asia Pacific airfreight carriers saw demand rise 6.1 percent for the month, as volumes returned “to the levels reached in 2010 during the post-global financial crisis bounce-back,” IATA said.
European airlines posted a 9 percent year-over-year increase in demand for November, a slight slowdown from the 13.3 percent growth seen in October. According to IATA, the growth corresponds with an increase in reported new export orders in Germany during the last few months and the ongoing weakness of the euro compared with other foreign currencies, but was tempered in part by a strike at Lufthansa Airlines.
North American airfreight carriers saw international volumes grow 5.6 percent in November from a year prior, driven in part by an increase in westbound import flows from Europe to the U.S. helped by a strong dollar. U.S. exports, on the other hand, remain under pressure from the strength of the dollar, which makes U.S. products more expensive and, therefore, less desirable abroad.
Middle Eastern airlines saw volumes jump 7.8 percent from a year earlier, while African carriers experienced a 10.9 percent year-over-year spike in demand, the largest increase among the various regions tracked by IATA.
Latin American airfreight carriers, on the other hand, saw demand slip 1.3 percent from a year earlier, as regional demand continues to be held down by weak economic and political conditions, particularly in Brazil, Latin America’s largest economy. The intra-South America market has been the weakest performer to date in 2016, with volumes down nearly 20 percent compared to the same 2015 period, according to IATA.