Global Air Freight
The International Air Transport Association (AITA) reports in Joly indicate steady growth over the first half of 2018. The IATA report describes an increase in freight demand and freight capacity by 4.2% by mid-2018 compared to a similar period last year (“IATA – Air Freight Growth Continues to Grow Modestly in May, Up 4.2%”, 2018). However, this downward trend from 5.2% turnover in the previous month. International freight capacity increased by 6.2% year on year in mid-2018 recording a fourth-month straight demand growth. The demands for international freight are steadily increasing following a slow start to 2018. The freight demands cannot match the rapid growth witnessed in 2017.
The IATA pressroom report identifies the main indicators to dwindling international freight growth rate. The decline is relative to the end of the rapid re-stocking cycle that created demand for quicker deliveries to meet consumers’ demands. Additionally, the purchasing managers’ index (PMI) indicates a 21-month low on new export orders (“IATA – Air Freight Growth Continues to Grow Modestly in May, Up 4.2%”, 2018). Lastly, the report raises concerns over the increasing trade tension that is softening global trade. Despite the growing friction among governments on trade and policies as well as rescinding world trade, AITA predicts a steady 4.0% growth over 2018.
The IATA report indicates growth in international freight services in all other regions except Africa. The Asia-Pacific region freight demands grew by 4.9% compared to similar period last year. The freight capacity in the region is projected to grow by 7.4% in 2018. North American airlines recorded a 5.9% growth in freight volumes from 4.6% last year. The growth in freight capacity by 5.4% has contributed to the higher air imports volumes (“IATA – Air Freight Growth Continues to Grow Modestly in May, Up 4.2%”, 2018). European and Middle East airliners May records indicate significant year on year growth and a significant decline from April’s turnovers. The Latin American carriers recorded the largest growth at 11.4% with a 1.5% capacity growth. African airliners seem to be struggling with 2.0% contraction by May compared to last year’s figures. This decrease emerges from the softening demands of Asia and Middle East markets.
References
IATA – Air Freight Growth Continues to Grow Modestly in May, Up 4.2%. (2018). Retrieved from https://www.iata.org/pressroom/pr/Pages/2018-07-04-01.aspx