Global air freight demand shrank 3.2 percent in July compared to 2018, according to the International Air Transport Association (IATA).
July was the ninth consecutive month of declines.
The decline is attributed to the trade dispute between the U.S. and China and weak global trade. When compared to July 2018, trade volume between the United States and China has shrunk 14 percent, and global trade volumes fell 1.4 percent.
“Trade tensions are weighing heavily on the entire air cargo industry,” Alexandre de Juniac, IATA director general and CEO, said. “Higher tariffs are disrupting not only transpacific supply chains but also worldwide trade lanes. While current tensions might yield short-term political gains, they could lead to long-term negative changes for consumers and the global economy. Trade generates prosperity. It is critical that the U.S. and China work quickly to resolve their differences.”
Asian-Pacific and Middle Eastern airlines saw the greatest declines while African and Latin American airlines recorded some growth. North America and Europe airlines recorded moderate decreases.
Asia-Pacific holds a 35.4 percent market share of global air freight, the largest market share of any region.
In July, freight capacity increased 2.6 percent, marking the ninth consecutive month when capacity growth has been higher demand growth.