in Aerospace

IATA sees air freight demand decline 1.1% in November

Posted 8 January 2020 · Add Comment

The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometres (FTKs), decreased by 1.1% in November 2019, compared to the same period in 2018.

This marks the 13 consecutive month of year-on-year declines in freight volumes.

Despite the decline in demand, November’s performance was the best in eight months, with the slowest year-on-year rate of contraction recorded since March 2019. In part, November’s outcome reflects the growing importance of large e-commerce events such as Singles Day and Black Friday. 

While international e-commerce continues to grow, overall air cargo demand continued to face headwinds from the effects of the trade war between the US and China, the deterioration in world trade, and a broad-based slowing in global economic growth.

Freight capacity, measured in available freight tonne kilometres (AFTKs), rose by 2.9% year-on-year in November 2019. Capacity growth has now outstripped demand growth for the 19th consecutive month.



“Air cargo recovered slightly in November, with demand down 1.1% - a significant improvement over the 3.5% decrease in October. However, the fourth quarter is a peak season for air cargo. So, a decline in growth is still a disappointment. Looking forward, signs of a thawing in US-China trade tensions are good news but there is still a long way to go if cargo is to achieve 2.0% growth forecast in 2020,” said Alexandre de Juniac, IATA’s Director General and CEO (above).



Regional Performance
Airlines in Asia-Pacific, Latin America and the Middle East suffered sharp declines in year-on-year growth in total air freight volumes in November 2019, while North American carriers experienced a more moderate decline. Europe and Africa were the only regions to record growth in air freight demand compared to November last year.
•    Asia-Pacific airlines saw demand for air freight contract by 3.7% in November 2019, compared to the same period in 2018. This was the sharpest drop in freight demand of any region for the month.  Capacity increased by 1.8%. The US-China trade war has significantly affected the region, with demand on the large Asia - North America market down 6.5% year-on-year in October (latest available data). However, the thawing of US-China trade relations and robust economic growth in key regional economies are positive developments.
•    North American airlines saw demand decrease by 1.1% in November 2019, compared to the same period a year earlier. Capacity increased by 3.3%. Slower growth in the US economy and trade tensions with China have affected demand.  However, positive progress in trade negotiations between both countries highlighted by the ‘phase one’ deal is a positive development.
•    European airlines posted a 2.6% increase in freight demand in November 2019 compared to the same period a year earlier.  Better than expected economic activity in Q3 in some of the region’s large economies helped support demand. Capacity increased by 4.0% year-on-year.
•    Middle Eastern airlines’ freight volumes decreased 3.0% in November 2019 compared to the year-ago period – a significant improvement over the 5.7% decrease in October. Capacity increased by 2.6%. Against a backdrop of operational and geopolitical challenges facing some of the region’s key airlines, seasonally adjusted freight volumes in the region have continued a modest upwards trend which is a positive development for the region’s carriers. However, escalated geopolitical tensions threaten the regions’ carriers in the period ahead. 
•    Latin American airlines experienced a decrease in freight demand in November 2019 of 3.4% compared to the same period last year.  Various social and economic headwinds in the region’s key economies have impacted the region’s air cargo performance. Capacity decreased by 2.3% year-on-year.
•    African carriers posted the fastest growth of any region in November 2019, with an increase in demand of 19.8% compared to the same period a year earlier. Strong trade and investment links with Asia contributed to the positive performance. Capacity grew 13.7% year-on-year.



 

* required field

Post a comment

Other Stories
Advertisement
Latest News

IBA forecasts strong headwinds for aviation in 2020

The global aviation marketplace will encounter a wide range of challenges in 2020, according to Leatherhead based independent aviation consultant IBA, which released its 2020 Market Update today.

Babcock wins safe cargo handling system contract for ethane ships at Jiangnan

Babcock’s LGE business has won a cargo handling system design and supply contract for two Very Large Ethane Carriers (VLEC) at China’s Jiangnan shipyard.

UK Test & Evaluation Facilities at Shoeburyness and Halstead modernised

Ed Cutts, Interim Director Weapons, vice acting head at DE&S, recently visited Ministry of Defence (MoD) Shoeburyness and QinetiQ’s Fort Halstead site to witness activities and the recent improvements to UK Test & Evaluation

New MoD partnership to protect Thorney Island environment

The Ministry of Defence (MoD) and the Environment Agency have signed a Memorandum of Understanding creating a partnership that will develop new habitat and sea defences on Thorney Island, East Sussex.

CAA and CREST accredit first companies under new ASSURE scheme

The Civil Aviation Authority (CAA) has announced its new ASSURE scheme developed in partnership with CREST, the not-for-profit accreditation and certification body for the technical security industry and the accreditation of the

Redscan awarded CREST SOC Accreditation

Penetration testing, threat detection and response specialist, Redscan, today announced that it has achieved accreditation from CREST for its Security Operations Centre (SOC).

Rubb SK2911070220
See us at
AMAS BT0312270220VIDSE BT1605060320FIL20BT010819260720S&P BT241019040320