A monthly report released by the International Air Transport Association (IATA) once again posted reduction in air freight demand by 4.5% in the month of September corresponding to the same period last year.
September marked the 11th consecutive month of year-on-year decline in freight volume for the year 2019. 2019 marked the longest period of decline in demand since the global financial crisis of 2008.
Freight capacity measured in available freight tonne-kilometres rose by 2.1 per cent year-on-year in September. Capacity growth has now outstripped air freight demand growth for the 17th consecutive month.
Air cargo continues to suffer due to the ensuing tariff war between the United States and China, and South Korea and Japan. It also suffers from the worsening global trade.
“The US-China trade war continues to take its toll on the air cargo industry. October’s pause on tariff hikes between Washington and Beijing is good news. But trillions of dollars of trade is already affected, which helped fuel September’s 4.5% year-on-year fall in air freight demand. And we can expect the tough business environment for air cargo to continue.”~ Alexandre de Juniac, IATA’s Director General and CEO
A pause on tariff hikes between Washington and Beijing is good news. Trillions of dollars of trade is already affected which helped fuel September’s 4.5% year-on-year fall in demand. And we can expect the tough business environment for air cargo to continue, he said in a statement.
Airlines in Asia Pacific, Europe, North America and the Middle East suffered sharp declines in year-on-year growth in total air freight volumes in September 2019, while Latin America carriers experienced a more moderate decline. Africa was the only region to record growth in air freight demand compared to September last year.
Asia-Pacific airlines saw demand for air freight contract by 4.9% in September 2019 compared to the same period in 2018. The US-China and South Korea-Japan trade wars along with the slowdown in the Chinese economy have significantly impacted this region.