Air cargo volumes during the month increased 12.1 percent from August 2016, but the International Air Transport Association (IATA) projects that that the peak cyclical growth period for airfreight volumes may be drawing near.
The International Air Transport Association (IATA) revealed Wednesday that global airfreight demand in August increased 12.1 percent year-over-year, marking the fifth time in six months of double-digit gains on the previous year’s performance.
Airfreight capacity in August grew 4.7 percent year-over-year.
“Demand growth continues to significantly outstrip capacity growth, which is positive for industry load factors, yields and financial performance,” IATA said.
Asia-Pacific airfreight carriers saw volumes rise 11.3 percent year-over-year in August, with strong demand growth on all major routes to, from and within the Asia-Pacific, which was consistent with strong export order books for the region’s manufacturers.
Volumes carried by European airfreight carriers grew 11.8 percent year-over-year in August. “Concerns that the recent strengthening of the euro may have affected the regions’ exporters have not materialized,” IATA said.
North American airfreight carriers increased volumes 11.7 percent year-over-year during the month. The strength of the U.S. dollar boosted the inbound freight market over the past few years, but its slight decline since the start of the year is expected to start to help rebalance trade flows, IATA explained.
Volumes transported by Middle Eastern airfreight carriers in August increased 14.1 percent year-over-year, largely reflecting favorable comparisons to a short-lived weak patch in demand in 2016 instead of an acceleration in the current demand trend.
Latin American airfreight carriers increased volumes 8.5 percent year-over-year in August, due to an economic recovery in Brazil, the region’s largest economy.
Meanwhile, volumes carried by African airfreight carriers soared 29.4 percent year-over-year during the month, fueled by strong growth on the trade lanes to and from Asia.
Overall, the Asia-Pacific makes up 37.5 percent of the total freight traffic market share, based on freight ton kilometers, followed by Europe at 23.5 percent, North America at 20.7 percent, the Middle East at 13.9 percent, Latin America at 2.8 percent and Africa at 1.6 percent.
Looking ahead, signs continue that the peak cyclical growth period for airfreight volumes may be near, IATA said, pointing out how the global inventory-to-sales ratio in the U.S., for example, has stopped falling, which usually means that re-stocking to meet demand is coming to an end.
IATA: Airfreight volumes soar 12.1% in August
