Middle East sees benefits as global levels plateau
The International Air Transport Association (IATA) has released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), was flat (0%) in November 2018 globally, but positive in the Middle East year-on-year.
Freight capacity, measured in available freight tonne kilometres (AFTKs), rose by 4.3% year-on-year in November 2018 worldwide.
This was the ninth month in a row that capacity growth outstripped demand.
Three of the six regions reported year-on-year demand growth in November 2018 – North America, Middle East and Latin America.
Asia Pacific, Europe and Africa all contracted.
Middle Eastern airlines’ freight volumes expanded 1.7% in November 2018 compared to the same period a year earlier.
Capacity increased by 7.8% over the same period.
Seasonally-adjusted international air cargo demand has now trended upwards for the past six months helped by stronger trade to/from Europe and Asia.
Alexandre de Juniac, IATA’s Director General and CEO, said: “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.”
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