The International Air Transport Association (IATA) reports that demand in global air freight markets decreased by 4.5% in September 2019, compared to the same period in 2018. This marks the eleventh consecutive month of year-on-year decline in freight volumes, the longest period since the global financial crisis in 2008.
According to IATA, air cargo continues to suffer from the intensifying trade war between the US and China, and South Korea and Japan and the deterioration in global trade.
North American airlines saw demand decrease by 4.2% in September and European airlines posted a 3.3% decrease in their freight demand. Asia-Pacific airlines saw demand for air freight contract by 4.9%. The US-China and South Korea-Japan trade wars along with the slowdown in the Chinese economy have significantly impacted this region. Middle Eastern airlines’ freight volumes decreased 8.0% and Latin American airlines experienced a decrease 0.2%. Africa was the only region to record growth in air freight demand (2.2%).
“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 demand. And we can expect the tough business environment for air cargo to continue,” said Alexandre de Juniac, IATA’s Director General and CEO.< Return