Asian air cargo markets register moderate gains

Preliminary August traffic figures released by the Association of Asia Pacific Airlines (AAPA) today showed moderate gains in air cargo volumes and insignificant changes in year-over-year (y-o-y) freight load factors.

That said, the figures failed to dispel cynicism about the region’s “generally lackluster international air cargo demand for the January-August period,” according to Andrew Herdman, AAPA director general. AAPA members reported a 0.7 percent volume decline, compared to the same period last year, “although the shortfall has narrowed following a modest uptick in recent months,” Herdman added.

International air cargo demand grew by 2.5 percent, measured in freight tonne kilometers (FTK). The average international freight load factor edged up by 0.1 percentage points to 60.5 percent in August, as offered freight capacity rose by 2.3 percent, AAPA said.

The cargo results were well shy of passenger-side y-o-y growth of 4.1 percent, which was down from year-to-date gains of 6.5 percent

Herdman expressed concern that, for air cargo markets, the persistent weakness in global trade conditions would remain a concern. He also anticipated “rates remaining depressed despite the recent uptick in air cargo activity.”

Air cargo markets are susceptible to macroeconomic trends, given that businesses look to cut costs and opt for cheaper modes of transit during downturns. IATA’s July 2016 airfreight analysis stated that “the ongoing sluggishness of global trade growth continues to present clear headwinds for the airfreight market.”

However, the same publication cautioned that, “there is no simple mechanistic link between airfreight and world trade, mainly because airfreight carries just a very small proportion of total trade volumes.”

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