The International Air Transport Association (IATA) reported that September 2019 was the 11th consecutive month of year-on-year global air freight decline, the longest period since the global financial crisis in 2008.
Demand, measured in freight tonne km (FTKs), decreased by 4.5%, while freight capacity rose by 2.1% versus the same period in 2018.
IATA’s Director General and Chief Executive, Alexandre de Juniac, said: “The US-China trade war continues to take its toll on the air cargo industry. October’s pause on tariff hikes between Washington and Beijing is good news but trillions of dollars of trade are already affected, which helped fuel September’s 4.5% fall in demand.”
The current state of the air freight market is volatile and showing some weakness as we enter into the final months of 2019, traditionally air freight’s peak season.
Air freight industry experts’ expectations for the peak season are mixed, with some reporting a slight improvement in demand in recent weeks, but most expecting a modest peak season, one shorter and less heavy and nowhere near the record volumes of 2018.
In short, it’s expected the tough business environment for air cargo will continue into 2020.
For more information, contact David Lychek, Manager – Ocean & Air Services.