The International Air Transport Association (IATA) announced that demand in global air freight markets 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.
IATA says that signs of a modest recovery in recent months appear to have been premature, with the June contraction broad-based across all regions with the exception of Africa. Capacity growth remains subdued and the cargo load factor continues to fall. Globally, trade growth is languishing, and business uncertainty is compounded by the latest tariff increases in the U.S.-China trade dispute.
Asia-Pacific airlines saw demand for air freight contract by 5.4% in June and North American airlines’ freight demand decreased by 4.6%. European airlines posted a 3.6% decrease, while Middle Eastern airlines’ freight volumes decreased 7.0%. 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.
“Global trade continues to suffer as trade tensions deepen, particularly between the U.S. and China. 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.< Return