Europe, Americas, others out-performed Africa in freight demand-IATA
- Continent records a 4.2% decline
African carriers saw freight demand decrease by 4.2 per cent in October 2018, compared to the same month last year.
This was the seventh time in eight months that demand shrank. Over the same period, capacity increased by 5.4 per cent year-on-year.
Also worrisome is report that demand conditions on all key markets to and from Africa remain weak.
Nonetheless, seasonally-adjusted international freight volumes have stopped declining and recovered sharply in recent months.
Africa currently accounts for 1.7 percent of the global air freight market.
This is coming from the International Air Transport Association’s (IATA) latest analysis on the state of the global air freight market, based on demand and traffic data recorded during October 2018 in the various regions around the world.
The IATA released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), rose 3.1 per cent in October 2018, compared to the same period the year before.
The IATA data also showed that this pace of growth was up from a 29-month low of 2.5 per cent in September.
Regional Performance
All regions reported year-on-year demand growth in October 2018, except Africa which contracted.
- Asia-Pacific airlines saw demand for air freight grow by 1.9% in October 2018, compared to the same period last year. This pace of growth was relatively unchanged from the previous month. Weaker manufacturing conditions for exporters, and longer supplier delivery times particularly in China and Korea impacted the demand. As the largest freight-flying region, carrying more than one-third of the total, the risks from rising trade tensions are disproportionately high. Capacity increased by 4.2%.
- North American airlines posted the fastest growth of any region in October 2018, with an increase in demand of 6.6% compared to the same period a year earlier. Capacity increased by 8.2% over the same period. The strength of the US economy and consumer spending have helped support the demand for air cargo over the past year, benefiting US carriers.
- European airlines experienced a 1.4% increase in freight demand in October 2018 compared to the same period a year earlier. Capacity increased by 1.9% year-on-year. Weaker manufacturing conditions for exporters, and longer supplier delivery times particularly in Germany, Europe’s largest freight flying country, impacted demand. Seasonally-adjusted international air cargo demand remained deflated in October, which could indicate the start of a broader weakening in demand.
- Middle Eastern airlines’ freight volumes expanded 5.0% in October 2018 compared to the same period a year earlier. Capacity increased by 8.8% over the same period. There are signs of a pick-up in seasonally-adjusted international air cargo demand helped by more trade to/from Europe and Asia.
- Latin American airlines’ freight demand rose 0.3% in October 2018 compared to the same period last year and capacity increased by 3.3%. International demand slipped by 0.9%, marking the first contraction in 11months. International freight volumes have fallen month-on-month in four of the past five months, reflecting broad weakness in the region’s key markets.
- African carriers saw freight demand decrease by 4.2% in October 2018, compared to the same month last year. This was the seventh time in eight months that demand shrank. Capacity increased by 5.4% year-on-year. Demand conditions on all key markets to and from Africa remain weak. Nonetheless, seasonally-adjusted international freight volumes have stopped declining and recovered sharply in recent months.
