Global growth flat at 0%
The International Air Transport Association (IATA) released data for air freight markets. Middle Eastern airlines’ freight volumes measured in freight tonne kilometers (FTKs) expanded 1.7% in November 2018 compared to the same period a year earlier.
Capacity measured in available freight tonne kilometers (AFTKs) increased by 7.8% over the same period.
The Middle East’s seasonally-adjusted international air cargo demand has now trended upwards for the past six months helped by stronger trade to/from Europe and Asia.
IATA data for global air freight markets showing that demand was flat (0%) in November 2018, compared to the same period the year before.
This was the slowest rate of global growth recorded since March 2016, following 31 consecutive months of year-on-year increases.
Global freight capacity rose by 4.3% year-on-year in November 2018. This was the ninth month in a row that capacity growth outstripped demand.
While international e-commerce continues to grow, overall demand faced significant headwinds such as signs of weakness in global economic activity; a contraction in export order books in all major exporting nations, with the exception of the US; shorter supplier delivery times in Asia and Europe; and weakened consumer confidence compared to very high levels at the beginning of 2018.
Said Alexandre de Juniac, IATA’s Director General and CEO: “Normally the fourth quarter is a peak season for air cargo. So essentially flat growth in November is a big disappointment.
“While our outlook is for 3.7% demand growth in 2019, downside risks are mounting. Trade tensions are cause for great concern. We need governments to focus on enabling growth through trade, not barricading their borders through punitive tariffs.”