IATA’s Oct. results for cargo demand show slim international growth

International demand for airfreight for the month of October grew at a relatively weak rate of 3.1 percent, measured in freight tonne kilometers (FTKs), compared to the previous October, according to the International Air Transport Association (IATA).

The figure is a slight improvement following September, when the organization reported a 29-month low of 2.5 percent international FTK growth, year-over-year. Still, the October numbers are not as robust as one may expect as the industry was approaching peak season.

All of the surveyed international markets saw demand increase in the range of 0.3 to 6.6 percent, except for Africa, which contracted for the seventh time in eight months, this time by a rate of 4.2 percent, when compared to October 2017.

North America saw the highest y-o-y growth rate – 6.6 percent – which IATA attributed to a healthy economic environment that fueled strong demand for e-commerce products by consumers in the region.

The Middle East also saw decent demand growth rate of 5 percent, caused by demand for cargo transport to and from Europe and Asia.

Asia-Pacific and Europe each saw 1.9 and 1.4 percent respective growth rates, y-o-y, during the month, which could be caused by “weaker manufacturing conditions” and longer supplier delivery times in both regions, IATA said. Demand for airfreight in the Latin American region saw the weakest growth rate at 0.3 percent.

Alexandre de Juniac, director general and CEO of IATA, however, offered an optimistic perspective on the approach of the fourth quarter, but did warn of the tense international trade environment. “The growth of e-commerce is more than making up for sluggishness in more traditional markets,” he said, but referred to cargo a “tough business.”

While stakeholders always like to see thicker growth margins, considering the particularly robust demand experienced by carriers during 2017, these comparative increases could still be considered a win.

Those interested in learning more about the current climate of the air freight industry are invited to join us Cargo Facts EMEA, to be held 4-6 February at The Westin Grand Frankfurt. Register before 14 December to take advantage of early bird rates. To register or for more information, visit www.cargofactsemea.com.