IATA’s latest airfreight market data shows that cargo demand, measured in freight tonne kilometres (FTKs), declined for the eighth month in a row in June.
Global FTKs decreased by 4.8% across the board in June 2019 compared to the same period in 2018, marking the continuation of year-on-year decline in freight volumes, observed every month since the end of 2018.
The June contraction was recorded across all regions, with the exception of Africa, which saw 3.8% growth in FTKs. Meanwhile, the Middle East saw the worst decline with -7.0% decrease in demand, Asia Pacific saw -5.4% decline, Europe -3.6%, Latin America -1% and North America -4.6%.
IATA is subsequently calling recent indications of modest recovery “premature”. Capacity growth remains subdued and the cargo load factor continues to fall. As global trade growth weakens, and business confidence is further damaged by the latest tariff increases in the US-China trade dispute, there are no suggestions that recovery is imminent.
“Global trade continues to suffer as trade tensions – particularly between the US and China – deepen. As a result, air cargo markets continue to contract. Nobody wins a trade war. Borders that are open to trade spread sustained prosperity. That’s what our political leaders must focus on,” said Alexandre de Juniac, IATA’s Director General and CEO.
IATA's full June airfreight market analysis can be viewed here.