Dubai PR Network, Online Press Release from Dubai and Middle East
 
Shipping & Logistic(Shipping and Logistic)
Filter PR by
  
Freight Volumes Continue to Trend Upward in August, Up 2.3%
 
Dubai, UAE, October 01, 2018:   The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), rose 2.3% in August 2018, compared to the same period the year before. This pace of growth was unchanged from the previous month but was less than half the five-year average growth rate of 5.1%. 
 
Freight capacity, measured in available freight tonne kilometers (AFTKs), grew by 4.5% year-on-year in August 2018. This was the sixth month in a row that capacity growth outstripped demand growth. Yields, however, appear to be holding up. 
 
Growth is being supported by a number of factors, including buoyant consumer confidence, an upturn in the global investment cycle and growing international e-commerce. However, demand is being negatively impacted by three factors:
  • A broad-based weakening in manufacturing firms’ export order books. Specifically, export order books in Europe, China, Japan and Korea have fallen 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.
  • Risks to global trade from the recent escalation in trade tensions. 
“August demand for air cargo grew at 2.3%, unchanged from the previous month. Buoyant consumer confidence, the growth of international e-commerce and the broad-based global economic upturn are behind the growth. But there are downside risks. Order books are weakening and supply delivery times are lengthening. And the growing trade tensions are a specter over the industry. The early focus of tariffs was not on products typically carried by air. But as the list of tariffs grows so does the air cargo industry’s vulnerability. And, we can expect souring trading relations to eventually impact business travel. There are no winners in trade wars,” said Alexandre de Juniac, IATA's Director General and CEO.   
 
Regional Performance
 
All regions reported year-on-year demand growth in August 2018, except Africa which contracted. All regions reported that capacity growth exceeded growth in demand. 
 
Asia-Pacific airlines saw demand for air freight grow by 1.6% in August 2018 compared to the same period last year. This was an increase over the previous month but a marked slowdown in growth from the past year. Weaker manufacturing conditions for exporters, particularly in Japan and China, have impacted the demand. As the largest freight-flying region, carrying more than one-third of the total, the risks from protectionist measures are disproportionately high. Capacity increased by 3.4%.
 
North American airlines’ freight volumes expanded 2.8% in August 2018 compared to the same period a year earlier. Capacity increased by 3.2% over the same period. The recent momentum of the US economy and solid trade flows across the Atlantic have helped strengthen demand for air cargo, benefiting US carriers.
 
A 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 the fastest growth of any region in August 2018, with an increase in demand of 3.7% compared to the same period a year earlier.
Despite a weakening in manufacturing firms’ export order books in Europe, particularly Germany, international air cargo demand has trended upwards at an annualized rate of 8% over the last six months. Strong conditions on the transatlantic market and a pickup in demand between Europe and Asia have driven this growth. Capacity increased by 5.2% year-on-year. 
 
Middle Eastern carriers’ carriers posted a 2.2% increase in freight volumes in August 2018 compared to the same period last year. This was a significant deceleration in demand over the 5.4% recorded the previous month. The decrease mainly reflects developments from a year ago rather than a substantive change in the near-term trend. International cargo demand is trending upwards at an annualized rate of 6% in the region supported by a pick-up in trade to/from Europe and Asia. Capacity increased 7.9% year-on-year.
 
Latin American airlines experienced an increase in freight demand growth in August 2018 of 1.6% compared to the same period last year and capacity increased by 5.3%. Some of the smaller markets within the region have seen strong growth in international freight volumes so far this year. Nevertheless, the broader pick-up in demand seen over the last 18 months has now paused. 
 
African carriers saw freight demand contract by 7.1% in August 2018, compared to the same month last year. This was the fifth time in six months that demand contracted. Capacity increased by 6.0% year-on-year. After a peak in demand at the end of 2017, seasonally-adjusted international freight volumes have stopped declining in recent months. However, they remain 8% lower than the November 2017 peak. Demand conditions on all key markets to/ from Africa remain weak.  


Posted by : Dubai PR Network Editorial Team
Viewed 4276 times
PR Category : Shipping and Logistic
Posted on : Monday, October 1, 2018  3:16:00 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 : ZAJEL to unveil future plans for Smart services at GITEX 201...
Next Story : ZAJEL and SIRA Signs Cooperation Agreement for Outsourcing D...
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
BodyO launches officially its AiPod for a full body check-up during the Gitex Future Stars [11047-Views]
The World of Aigner Wunderkammer [10992-Views]
Halloween “Catwoman” mask using BROW products [8564-Views]
Manero Peripheral (43 Mm) Classic Watchmaking Meets State of,the Art Technology [8418-Views]
Fifi & Friends - Now available at more outlets across the UAE [8314-Views]
BOLLYWOOD PARKS™ Dubai introduces 11 new shows with a new line up of performances from var... [8223-Views]
Corum Heritage Eleganza- Dedicated to the stylish woman [7832-Views]
Win up to 250,000 Gold coins at Malabar Gold & Diamonds this festive season [7765-Views]
With more collections and a more spacious car parking, Kalyan Silks moves to Electra Stre... [7271-Views]
Dubai Shopping Festival Returns With Much-awaited Mega Raffles [7058-Views]
Joyalukkas Celebrates the Festival of Light with Irresistible Offers [7021-Views]
Michael Kors to Introduce a Special-edition Whitney Handbag for the Middle East [6991-Views]
Dubai's newest social hub - Bar Baar introduces ‘Thela Baar Brunch' [6704-Views]
Hour Choice presents Coach Park Collection (Suede straps) [6271-Views]
Saddle Up With kate spade Fall 2018 [6198-Views]
Introducing the Nokia 7.1 to the UAE [6082-Views]
W Motors and Safe City Group introduce the BEAST PATROL at GITEX: One of the most advance... [5911-Views]
Sharjah Government pavilion highlights digital transformation of Sharjah at GITEX 2018 [5758-Views]
Sunglasses Trends for Fall/Winter 2018 [5740-Views]
Be Thankful with Tub of Butter This Thanksgiving [5710-Views]
Scuderia Ferrari Aspire Watch Special Edition Gift Set [5490-Views]
CITIZEN Unveils 100th Anniversary Limited Edition Collection [5331-Views]
Rado DiaMaster Ceramos Automatic [5252-Views]
Toyota's legendary King goes urban with the 2019 Land Cruiser Grand Touring Edition [4788-Views]
Sharjah Girl Guides Unleash their Power on International Day of the Girl Child [4764-Views]
 
RSS Facebook Twitter LinkedDin
 
Top Sections
 
Top Stories