Middle East Freight Volumes Up by 7.3% in April

IATA data for Middle East air freight markets shows that demand, measured in freight tonne kilometers (FTKs) is up 7.3% year-on-year. This was a significant acceleration in demand over the 0.8% recorded the previous month.

The increase in the region mainly reflects developments from a year ago rather than a substantive change in the near-term trend. Seasonally-adjusted freight volumes continue to track broadly sideways.

This is consistent with signs of a broader moderation in global trade.

IATA data for global air freight markets shows that FTK demand rose 4.1% in April 2018, compared to the same period the year before. This was up from the 1.8% growth in annual demand recorded in March 2018.

World-wide, freight capacity, measured in available freight tonne kilometers (AFTKs), grew by 5.1% year-on-year in April 2018. AFTK capacities in the Middle East meanwhile, grew by 4.8% year-on-year.

Read more: Middle East Air Cargo Volumes Slow Down in January

After a sharp fall in March 2018, to a 23-month low, global air freight volumes recovered slightly in April 2018. The pace at which demand is growing, however, remains significantly slower than in much of 2017.

The Purchasing Managers’ Index (PMI) for manufacturing and export orders fell in April 2018 to its lowest level since 2016. A softening of global trade is also evident with containerized freight demand slowing in tandem with air freight demand.

Seasonally-adjusted freight volumes continue to track sideways. (Source: IATA)

Read more: Air Freight Growth Slows to 22-month Low as Restocking Cycle Ends