GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >>

 
  Share
Dubai, UAE, October 01, 2018:   The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), rose 2.3% in August 2018, compared to the same period the year before. This pace of growth was unchanged from the previous month but was less than half the five-year average growth rate of 5.1%. 
 
Freight capacity, measured in available freight tonne kilometers (AFTKs), grew by 4.5% year-on-year in August 2018. This was the sixth month in a row that capacity growth outstripped demand growth. Yields, however, appear to be holding up. 
 
Growth is being supported by a number of factors, including buoyant consumer confidence, an upturn in the global investment cycle and growing international e-commerce. However, demand is being negatively impacted by three factors:
  • A broad-based weakening in manufacturing firms' export order books. Specifically, export order books in Europe, China, Japan and Korea have fallen in recent months.
  • Longer supplier delivery times are being reported by manufacturers in Asia and Europe, the top two global trading areas by volume. This typically means that they have less need for the speed afforded by air freight.
  • Risks to global trade from the recent escalation in trade tensions. 
“August demand for air cargo grew at 2.3%, unchanged from the previous month. Buoyant consumer confidence, the growth of international e-commerce and the broad-based global economic upturn are behind the growth. But there are downside risks. Order books are weakening and supply delivery times are lengthening. And the growing trade tensions are a specter over the industry. The early focus of tariffs was not on products typically carried by air. But as the list of tariffs grows so does the air cargo industry's vulnerability. And, we can expect souring trading relations to eventually impact business travel. There are no winners in trade wars,” said Alexandre de Juniac, IATA's Director General and CEO.   
 
Regional Performance
 
All regions reported year-on-year demand growth in August 2018, except Africa which contracted. All regions reported that capacity growth exceeded growth in demand. 
 
Asia-Pacific airlines saw demand for air freight grow by 1.6% in August 2018 compared to the same period last year. This was an increase over the previous month but a marked slowdown in growth from the past year. Weaker manufacturing conditions for exporters, particularly in Japan and China, have impacted the demand. As the largest freight-flying region, carrying more than one-third of the total, the risks from protectionist measures are disproportionately high. Capacity increased by 3.4%.
 
North American airlines' freight volumes expanded 2.8% in August 2018 compared to the same period a year earlier. Capacity increased by 3.2% over the same period. The recent momentum of the US economy and solid trade flows across the Atlantic have helped strengthen demand for air cargo, benefiting US carriers.
 
A pick-up in supply chain bottlenecks, which is typically alleviated by the speed of air freight, may also be benefiting the demand.  
 
European airlines posted the fastest growth of any region in August 2018, with an increase in demand of 3.7% compared to the same period a year earlier.
Despite a weakening in manufacturing firms' export order books in Europe, particularly Germany, international air cargo demand has trended upwards at an annualized rate of 8% over the last six months. Strong conditions on the transatlantic market and a pickup in demand between Europe and Asia have driven this growth. Capacity increased by 5.2% year-on-year. 
 
Middle Eastern carriers' carriers posted a 2.2% increase in freight volumes in August 2018 compared to the same period last year. This was a significant deceleration in demand over the 5.4% recorded the previous month. The decrease mainly reflects developments from a year ago rather than a substantive change in the near-term trend. International cargo demand is trending upwards at an annualized rate of 6% in the region supported by a pick-up in trade to/from Europe and Asia. Capacity increased 7.9% year-on-year.
 
Latin American airlines experienced an increase in freight demand growth in August 2018 of 1.6% compared to the same period last year and capacity increased by 5.3%. Some of the smaller markets within the region have seen strong growth in international freight volumes so far this year. Nevertheless, the broader pick-up in demand seen over the last 18 months has now paused. 
 
African carriers saw freight demand contract by 7.1% in August 2018, compared to the same month last year. This was the fifth time in six months that demand contracted. Capacity increased by 6.0% year-on-year. After a peak in demand at the end of 2017, seasonally-adjusted international freight volumes have stopped declining in recent months. However, they remain 8% lower than the November 2017 peak. Demand conditions on all key markets to/ from Africa remain weak.  



Posted by : GoDubai Editorial Team
Viewed 11322 times
Posted on : Monday, October 1, 2018  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : ZAJEL to unveil future plans for Smart services at GITEX 2018
Next Story : ZAJEL and SIRA Signs Cooperation Agreement for Outsourcing Delivery Services
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
From the Big Screen to Real Life: Tag Heuer Unveils New Monaco Limited Edition ...
Ferragramo Cuir
Heritage Corum Lab 01 Collection
3 Essential Styles You Can't Go Without This Summer'
SPORT TECH 40 MM'
'Rado Captain Cook Automatic Limited Edition with Travel Case'
Schneider Electric Improves Flexibility & Energy Savings with Extended Line of P...
A year on the road: Saudi Women Create First Women's Car Club in the Kingdom
Restoration by Parmigiani Fleurier
Ralph Lauren Presented with an Honorary UK Knighthood
Hamilton present Ventura collection
DarkMatter Group Calls for Improved Vigilance as UAE's Cyber-threat Landscape Re...
Forcepoint X-Labs Reveals How Cognitive Bias Leads to Reasoning Errors in Cybers...
58 Days of Summer Fun Begin at Modhesh World on Friday
Extensive range of exclusive M Performance Parts further enhance the BMW M8 Coup...
Introducing the MK Beach Club Pieces
Absolute New York – Makeup for the Unique and Modern
Eberhard & Co. Alfa Romeo Limited Edition'
La Grande Vie by Corum
M Performance Parts for the all-new BMW X3 M and BMW X4 M
Add a touch of gold to your skincare regimen for glowing results
Ford Edge Rolls into UAE Showrooms with ST Performance Credentials and Segment-F...
Reduce Your Wrinkles Night After Night!
Innovation for a Better Planet
The Hottest Summer Beauty Picks of 2019
Tonda 1950 Skeleton''
Luminous Locks Product Round Up
Starbucks carves out giant sand sculpture at La Mer
Corum Golden Bridges
Crushing on cushion at PAN Emirates
Corum pushes creative boundaries once again with the AC-One 45 Openwork Automati...
Emirates Mars Mission Science Week to commence in July
Top 5 Technology Gift Ideas for Father's Day
The Sportswear Edit
An Environmentally Friendly Approach to Interior Design with Home and Soul Dubai
Sharjah Chamber Concludes its Participation in the World Chamber Congress in Brazil
Nissan shares vision for future mobility at CES Asia 2019
An Essential Part of the Iconic Uniform
The Ralph Lauren Purple Label Spring 2020 Collection
Bedroom Decoration and Mattress Myths Debunked by IKEA
Dubai Maritime Cluster Office and the Irish Maritime Development Office Boost Ma...
Marks & Spencer - Mellow Yellow
Dubai Festival City Mall Gears Up for a Fantastic Summer Full of Surprises
Tonal Accesories
National Geographic Announces 2019-20 Upfront Slate, Pushing Programming Boundar...
Minuetto
Empower renews commitment towards community members through blood donation initiative
2019 Limited Edition of Flying Grand Regulator Skeleton
Dabur launches two healthcare innovations rooted in Ayurveda
Protect Your Hair From the Negative Effects of Summer Heat