Air freight demand flat in November

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Air freight demand in November was flat globally compared to 2017, according to the International Air Transport Association (IATA), and follows 31 consecutive months of year-on-year increases.

Demand, measured in freight ton kilometers, grew at its slowest rate since March 2016.

The flat growth is attributed to four factors: a weak global economy, weakened consumer confidence compared to the previous year, shorter supplier delivery times in Asia and Europe, and a contraction in export order books in all major exporting nations except for the United States.

“Normally the fourth quarter is a peak season for air cargo. So essentially flat growth in November is a big disappointment,” IATA Director General and CEO Alexandre de Juniac said. “While our outlook is for 3.7 percent demand growth in 2019, downside risks are mounting. Trade tensions are cause for great concern. We need governments to focus on enabling growth through trade, not barricading their borders through punitive tariffs.”

Half of the six regions IATA studies experienced growth in November. North America and Latin America both saw demand increase 3.1 percent while the Middle East grew 1.7 percent.

Demand in Asia Pacific fell 2.3 percent, 7.8 percent in Africa and 0.2 percent in Europe.

Asia-Pacific has the world’s largest market share.