Dubai PR Network, Online Press Release from Dubai and Middle East
 
Aviation, Airline & Aerospace(Travel & Tourism)
Filter PR by
  
Moderate Freight Growth Continues in July, Up 2.1%
 
Dubai, UAE, August 29, 2018:  The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), rose 2.1% in July 2018, compared to the same period the year before. This was the slowest pace of growth seen since May 2016 and well below the five-year average growth rate of 5.1%. 
 
Freight capacity, measured in available freight tonne kilometers (AFTKs), grew by 3.8% year-on-year in July 2018. This was the fourth time in five months that capacity growth outstripped demand growth. 
 
While the temporary grounding of the Nippon Cargo Airlines fleet may have exaggerated a slowdown in growth at the beginning of July, there are three indications that slower growth will continue: 
  • The inventory re-stocking cycle, which requires quick delivery to meet customer needs, ended at the beginning of the year.
  • There has been a broad-based weakening in manufacturing firms’ export order books. Specifically, export order books in Europe started weakening in February and have fallen in China and Japan in recent months.
  • Longer supplier delivery times are being reported by manufacturers in Asia and Europe, the top two global trading areas by volume. This typically means that they have less need for the speed afforded by air freight. 
“July demand for air cargo grew at its slowest pace since 2016. We still expect 4% growth over the course of the year, however the downside risk has increased. The tariff war and increasingly volatile trade talks between the world’s two largest trading nations – China and the US - are rippling across the global economy putting a drag on both business and investor sentiment. Trade wars only produce losers,' said Alexandre de Juniac, IATA's Director General and CEO.   
 
Regional Performance
 
All regions reported year-on-year demand growth in July 2018, except Africa which contracted. All regions, except Africa and Latin America, reported that capacity growth exceeded growth in demand. 
 
Asia-Pacific airlines saw demand for freight lose momentum in July 2018. Growth slowed to 0.9% compared to the same period last year. Capacity increased by 3.9%. As the largest freight-flying region, carrying one-third of the total, the risks from protectionist measures impacting the region are disproportionately high. 
 
North American airlines’ freight volumes expanded 2.6% in July 2018 compared to the same period a year earlier. Capacity increased by 4.0%. The recent momentum of the US economy and the US dollar has helped strengthen demand for air imports. A sharp pick-up in supply chain bottlenecks, which is typically alleviated by the speed of air freight, may also be benefiting the demand.  
 
European airlines posted a 2.6% increase in freight volumes in July 2018. This is a significant slowdown from the five-year average annual growth rate of 5.6%. Despite this and the weakening of manufacturers’ order books, seasonally-adjusted air freight volumes have resumed their upward trend in recent months. Capacity increased 4.4%. 
 
Middle Eastern carriers’ carriers posted the fastest growth of any region in July 2018 with an increase in demand of 5.4% compared to the same period a year earlier. Capacity increased 6.3%. Seasonally-adjusted freight volumes continue to trend upwards, however, at a comparatively modest pace by the region’s standards. 
 
Latin American airlines experienced a slowdown in freight demand growth in July 2018 to 3.0%. This was only a quarter of the growth rate seen in June 2018 (11.4%) but still above the 5-year average pace of 2.1%. Capacity decreased 7.8%.  
 
African carriers saw freight demand contract by 8.3% in July 2018, compared to the same month last year. This was the fourth time in five months that demand contracted. Capacity decreased by 0.7%. After a surge in international FTK volumes last year, seasonally-adjusted international freight volumes have now trended downwards at an annualized pace of 18% over the past six months. This reflects a softening in demand on markets to/from Asia and the Middle East. 


Posted by : Dubai PR Network Editorial Team
Viewed 10516 times
PR Category : Travel & Tourism
Posted on : Wednesday, August 29, 2018  3:28:00 PM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Previous Story : Abu Dhabi Airports Launches 'Flight of the Children of Zayed...
Next Story : The Emirates Group celebrates ‘Daughters of Zayed' on Emirat...
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Section Home

Related Stories



 
 
Most Viewed Press Release posted in the last 7 days
Hackket's Bags of Style [14512-Views]
Introducing the Swim and Beachwear Summer Collection from Marks & Spencer [12011-Views]
Saint Honore [10888-Views]
Chloé Launches The New Cloud-shaped “rosie” Sunglasses [10559-Views]
VBQ-presskit-denim-70s Capsule [9858-Views]
OMEGA Rocket Engine - Introducing the Master Chronometer Calibre 3861 [8198-Views]
From the Big Screen to Real Life: Tag Heuer Unveils New Monaco Limited Edition At Exclusi... [7796-Views]
Electricity Most Searched Fuel Energy Term Online in UAE [7277-Views]
Ministry of State for FNC Affairs Launches Forum Titled ‘Political Empowerment in the UAE' [6881-Views]
Jaguar Land Rover & Bmw Group Announce Collaboration for Next Generation Electrification T... [6655-Views]
Britain's Greatest Test Driver, Norman Dewis Obe, Passes Away [6637-Views]
Ferragramo Cuir [6515-Views]
Aston Martin Produces First Cars at St Athan [6252-Views]
BMW Group and Jaguar Land Rover announce collaboration for next-generation electrification... [6161-Views]
The Gucci Runway Makeup Looks for Cruise 2020 [6021-Views]
Certina DS PH200M collection' [5752-Views]
Backseat battles: kids driving their parents to distraction – and danger on the roads, Nis... [5685-Views]
Kickstart your summer workout with Ibn Battuta Mall's free indoor family Fun Run [5582-Views]
Vincitore Realty sells out 108 homes in the Dh375 million Benessere project in just three ... [5557-Views]
The Chaumet Garden of Earthly Delights [5520-Views]
Choose the perfect fragrance this Father's Day with Rasasi [5106-Views]
ZAAM Launches a spin on their iconic Polyhedron bag [5026-Views]
Jaquet Droz Unveils Its 2019 Novelties at Dubai Mall [4856-Views]
Happy Father's Day with Tonda 1950 Skeleton [4624-Views]
The SS19 Exclusive Edit From Etoile “La Boutique'' [4612-Views]
 
RSS Facebook Twitter LinkedDin
 
Top Sections
 
Top Stories