The International Air Transport Association (IATA) has released data for global air freight markets.
The latest data is showing that demand, measured in freight tonne kilometers (FTKs), decreased by 4.8% in June 2019, compared to the same period in 2018.
This marks the eighth consecutive month of year-on-year decline in freight volumes.
“Global trade continues to suffer as trade tensions—particularly between the US and China—deepen. As a result, air cargo markets continue to contract. Nobody wins a trade war. Borders that are open to trade spread sustained prosperity. That’s what our political leaders must focus on,” said Alexandre de Juniac, IATA’s Director General and CEO.
Asia-Pacific airlines saw demand for air freight contract by 5.4% in June 2019, compared to the same period in 2018. Although an important factor, the US-China trade war is not solely responsible for the fall. FTKs for the within-Asia market have decreased more than 10% over the past year. Air freight capacity increased by 1.8% over the same period.
North American airlines’ freight demand decreased by 4.6% in June 2019, compared to the same period a year earlier. Capacity increased by 1.9% over the past year. US-China trade tensions are weighing on the performance, with FTKs to Asia down 5%. FTKs on routes to and from Europe, South America and Middle East were also lower.
European airlines posted a 3.6% decrease in freight demand in June 2019 compared to the same period a year earlier. Comparatively strong cargo volumes within Europe are helping to minimise the impact of weaker German exports. Capacity increased by 2.8% year-on-year.
Middle Eastern airlines’ freight volumes decreased 7% in June 2019 compared to the year-ago period. Capacity increased by 2.7%. Seasonally-adjusted demand has been falling since late 2018, and the latest data show volumes to Europe, down 7.2% and Asia-Pacific down 6.5% were particularly weak.
Latin American airlines experienced a decrease in freight demand in June 2019 of 1% compared to the same period last year and capacity increased by 4.6%. Much of the decline in traffic can be attributed to weakness in the within-South America market, especially Brazil and Argentina, where FTKs fell 6.5%.
African carriers were the only ones to report growth in June 2019, with an increase in demand of 3.8% compared to the same period a year earlier. This makes Africa the strongest performer for the fourth consecutive month. Capacity grew 16.6%. Route analysis shows that the Africa-Asia performance is strong - up 12% year-on-year.